Markets are lower today with corn and soybeans both trading 1 lower. The markets will be closed tomorrow for Thanksgiving. The markets will have a shortened trading session on Friday when they will close at 12:05pm.
US weather will continue to make it difficult for northern growers to complete harvest fortunately most of our area should only see rain with very limited snowfall. Temperatures dropping next week should firm things up and allow combines to head back to the fields early next week. Weather in South America continues to improve which will support higher production from our neighbors/competitors to the south!
Historically today and Friday are positive days in the markets. Combined with the short positions that traders are carrying at month end we could see some short covering today or Friday.
Weekly export sales will be delayed until Friday due to the holiday.
Strong basis levels continue to keep corn moving while the CBOT fails to show any strength. Producers should be talking to their buyers and bankers to get a plan in place to take advantage of these tight basis levels. The market is telling us to sell the crop now. If you are of the opinion that the CBOT is going to rally sometime in the next 9 months look to re-own your grain on paper. March 2020 calls are cheap insurance that will keep you in the game in the event of a CBOT rally. This will also allow you to move your grain in the short term and avoid dealing with quality issues this year’s crop has.
Have a Safe Day and Happy Thanksgiving!