Corn and soybeans are trading 4 and 20 respectively this morning. Overnight March and May corn on the CBOT traded above $5 which was seen as a ceiling by many traders. We have blown thru all of the previous ceilings ($4, $4.50, $4.80) so it will be interesting to see if we can get a close above that level. With continued sales being made to China the markets are working to quell demand. The recent strength in the Chinese Yuan in relation to the US Dollar has made Chinese purchases easier. The strength in the Yuan is self inflicted by the Chinese government and is making this long term strength very questionable. Overnight Crude oil topped $50/bbl for the first time in close to a year which is positive news for the corn markets. This jump in oil was due to Saudi Arabia agreeing to cut oil production by 1 million barrels per day in the months of February and March.
I will continue to preach that producers need to be taking advantage of these markets as they are not sustainable. The markets are reacting as they should to curb demand and the inverses in the market show how quickly they are doing it.
Have a Safe Day!