Quiet markets this morning with corn up 1 and soybeans down 4 as we head into the Holiday. The markets will close at 1:20 today (normal time) and will close at 12:05 on Friday. Historically the markets are all over the place on Friday, so stay tuned as we could see some opportunities. With a lot of traders on vacation starting today, the volatility increases.
The Funds continue to let loose of long positions into December delivery. “The funds are estimated to be long 157,000 corn contracts. This is smallest long position in corn since 2020, which was the last time they were short. During President Trump’s trade war, the funds sat at a record short of 344,000 contracts of corn and 171,000 of wheat, just to give you perspective.
The first vessel carrying corn from Brazil to China is scheduled to depart today, marking the beginning of a new trade relationship between the two countries. Three more vessels are scheduled to depart for China yet before the end of the month, with another in early December. Both grain sorghum and barley imports into China are expected to decline by more than 6 million metric tons. That increases the feed deficit within China. Trade chatter within China suggests that roughly 15 cargoes of Brazilian corn have already been purchased, which would amount to 1 mmt of corn. Ukraine’s corn supplies are expected to remain limited and U.S. supplies expensive, opening the door for China to buy a significant amount of corn from Brazil.
Have a Happy Thanksgiving!