Markets were down sharply overnight and early this morning with a concern over the lack of fiscal stimulus and a second wave of COVID-19. Since the open both markets have rebounded slightly with corn now trading unchanged and soybeans down 3.
Markets look like they are reacting to new Covid cases around the World. New lock downs are developing across Europe. The British Government banned indoor gatherings in London to slow the spread of infection. The US Sec Treasury also stated that getting a stimulus agreement before the November election is going to be difficult and House Democrats are showing no sign of approving a new package.
The bean market has really picked up in volatility over the past 10 days. With the fund position so large, it makes the environment exceedingly dangerous if the relationship with the US and China were to completely come off the rails.
With the recent rally and a great marketing opportunity, producers are advised to make corn sales for O/N at $3.70, December 3.80 and early 2021 in the 3.85 range. Producers should also be watching summer of 2021 and get firm offers in for $3.90-$4.00 range.
Soybean harvest is almost complete which means corn harvest will be in full swing for everyone. This will put pressure on basis in areas for the next month or so.
Have a Safe Day!