Good morning,
Markets are quiet this am with corn and soybeans both unchanged.
A stronger US dollar, lower crude and lower equities with the DOW down over 250 points could add pressure to the grains, but instead they appear to be safe havens for investors.
With Covid cases rising globally an da few countries going into lock-down, there is concern over global demand for grains.
The overnight forecast run for South America now shows chances for light showers for the greater Buenos Aires region in the coming 10 day period. The forecast calls for normal to above normal rainfall across Northern and Central Brazil. Too much rain and chances for disease increase; the region will need warmer, sunnier conditions as the bean crop starts to bloom. Southern Brazil and Argentina remain dry, with chances for light showers (less than 1″) coming in the final days of November.
Producers should be talking with their grain buyers and getting firm offers and plans in place for December and Q1 sales. With the funds long 300k+ contracts it may take something significant to move these markets higher. A January report with higher production or a continued absence of Chinese buying is likely to move this market lower.
Look for limited trade next week with the holiday and lower volume.
Have a Safe Day!
Garry Gard
920-348-6844
