Markets are firm this morning with corn up 15, soybeans up 27 and wheat up 14.
Rumors that China is booking corn and soybeans started the rally last night that has rolled into todays trade. Chinese purchases are due to the slow harvest pace in Brazil that is less than 2% complete at this time. This means that China is filling its February slot with US beans.
Russia has signed the 50 mt tax on export wheat that starts March 1st. There will also be a 10 mt tax on barley and a 25 mt tax on corn. Additional taxes may be levied against new crop production. The Ukraine is expected to limit exports to 24 mmt of corn down from 29 mmt last year. Domestic stocks are low in both the Ukraine and Russia following three years of difficult weather.
Rallies in soybeans and wheat are pulling corn higher. The market is going to be really volatile in the coming weeks as there are a lot less players willing to play in the markets at these high prices.
Producers should continue to take advantage of the rallies and make old and new crop sales. $5+ old crop corn and $4.20+ new crop corn are nothing to pass up. As we saw Friday, it doesn’t take much to sell this market off!
Have a Safe Day!