Markets are calm this morning with the markets closing at 12 and most traders off for the holidays. Corn is up 1 and soybeans are up 3 at the time of this writing.
Chinese bean demand has been the catalyst for markets this week. China is expected to import more than 100 million tonnes of soybeans in 2020, a record high, said an executive with leading state-owned grains trader COFCO on Tuesday, as rebuilding of the country’s huge hog herd boosts demand for the protein. This has moved the needle on the bean market and thus pulled other commodities along as traders expect stocks to get even tighter in US soybeans.
The forecast for Argentina is wetter over the next 10 days, and the Southern Brazil forecast is much drier. Rain totals in Argentina range from .5 inches to 2.0 on the model run. If this hold true, it would be the best chance of rain in a month for Argentina. The last forecast change failed to hold up, with only trace amounts falling. The rain period is for Dec 26th-30th. Northern Brazil with see normal rain into the end of December. Temps are in the 100’s for Northern Brazil, and Argentina will be 80’s-90’s.
Funds are long 310,000 corn and 240,000 soybean contracts after yesterdays close. This is a signal that we could see some profit taking in the next week with month and year end profit taking.
Have a Merry Christmas!