Rumors of a new vaccine to combat the Coronavirus had provided some support to the markets yesterday and overnight, but follow thru this morning is not there in corn. With infections from the virus now topping 24,000 and deaths approaching 500 news that a new drug that was effective against the virus had traders back in the market. The treatment was tested on cells outside the human body, meaning it would be a long way from any clinical trials on people, let alone approval as a marketable drug. Markets opened this morning with corn down 2, soybeans up 3 and wheat unchanged.
South American weather has been keeping a bearish tone on the markets with traders needing an excessively wet weather pattern to develop in order to add premium.
Private analyst FC Stone increased their projections of Brazil’s 2019/20 soybean harvest by 1.9% from last month’s estimates. The harvest estimate was raised 4.56 billion bushels, up 8% from last year as strong yields trickle in from the early stages of harvest.
Producers should be actively monitoring and moving grain in their bins this winter due to quality issues that are going to make this crop one you DO NOT want to store very long. Historically the markets do not offer a lot of opportunity for higher prices in February and March so anyone that needs cash flow in those months should not hold out for higher prices. There are still some very good basis levels trading for corn delivered into spring. There is very little carry in the market which indicates that now is the time to be making cash sales. Basis sales for June and July are also advised as I expect these levels to widen out as we get this year’s crop in the ground. Cash prices are in the $3.80-3.90 range for old crop and $3.70-3.90 range for new crop. Give us a call today to discuss your plan for both crops and lock in these levels.
Have a Safe Day!