The combination of excellent weather in South America and fears over the coronavirus have pushed beans lower again this morning. As we get closer to February expectation for high yields in Brazil will continue to weigh on beans. Soybeans are down 8 with corn up 2 and wheat up 2 cents as well. Weekly export sales are delayed until tomorrow due to the holiday on Monday. China begins their Lunar New Year Holiday this Saturday.
Uncertainty about soybean purchases from China and an Indian ban on Malaysian palm oil also have the bears in control early today. Despite the signing of the Phase 1 trade deal providing some stability, the Chinese have still not booked any US beans since as they continue to bide their time on any potential buying. With a big crop coming off in South America, traders will begin to focus on spring weather in the US.
Funds are currently short 92,000 corn contracts and 20,000 bean contracts. Both have been fairly steady over the last month.
• If you are looking to get $4 for February or March delivered corn? Give us a call to see how we can get there!
• New crop 2020 cash prices are in the $3.80 range, these should be your starting levels with up to 30% being sold.
• Put in firm offers for additional new crop sales at $3.90-4.00 levels. (Huge acres in 2020 are going to push ending stocks into the 2 billion level)
• Bean basis is strong and sales of old crop beans for February thru May are recommended.
Have a Safe Day!