Corn and beans are starting the day higher after a week of lower trade. Corn is currently up 2 and soybeans are up 8.
We are down 20 cents in corn from the highs posted on Monday with concern over Omicron, better South American weather and funds moving money to other markets.
The forecast in South American calls for light rains early next week in Southern Brazil and heavy rain in Northern Brazil. Argentina has a small chance of an inch of rain in the South. Temps are going to heat up again over most of Argentina.
I believe the biggest mover the last couple days has been the funds moving money.
2021 had a lot of ups and downs in the markets, but a lot more up in all commodities. Corn is trading 30% higher and soybeans are 20% higher than a year ago this time. A strong export program along with smaller South American and Canadian crops were the drivers. Unfortunately, the market increases have been eclipsed by input costs for the 2022 crop year. Producers that are holding out on sales because they think input costs are reason for the markets to trade higher should be careful. The markets are not concerned with how much it costs to grow a bushel of corn or soybeans. Supply and demand are the drivers of every market. If/when South American weather changes the world supply will change. I do not see us trading below $4 for corn and $11 for soybeans on the CBOT anytime soon, but good prices need to be captured when they are present.
Thank you to all of our producers we partnered with in 2021. We look forward to working together in 2022 to make your operation be even more successful.
Here’s to hoping 2022 prices may be more stable than 2021 and that your year may be filled with great opportunities!
Have a Happy New Year