Happy New Year!
Early calls are mixed to slightly higher with more of a risk on tone in the market. The Funds are net short soybeans, soymeal and corn and net long Chicago wheat and soyoil. I would expect the funds could begin to cover some of their shorts before the USDA Jan 10 report.
Talk that the list and amounts that China will agree to buy under the Phase 1 deal will not be announced could be negative for the corn. Soybeans could see some buying on the news that China is expected to buy more soybeans than any over commodity. China though may not start buying US Ag goods until February or later.
I would advise producers to put offers in with your buyers for old crop corn and soybeans before the January 10th Production and S&D report. I would target $3.99-$4.08 on the CH CBOT and $9.60-$9.85 on the SH CBOT. We have struggled to trade above these levels over the last 5 years. I believe producers should also be active sellers of the 2020 new crop at current prices.($3.80) With the potential for 94-100 million acres of corn being planted this spring these current prices will not be maintained. We had approximately 90 million acres planted last year and the total prevent plant acres around 11 million the potential for acres to surpass 94 million acres is very high.
Have a Safe Day!