Prices are higher to finish the week with corn up 2 and soybeans up 9 to finish the wek.
It is a same story on a different day as soybeans score new highs for the rally which is dragging the grains along for the ride. Fund managers appear willing to continue to extend their length until someone or something pushes back. Farmers have been modest sellers on the rally, but most are waiting until they run the combines before becoming too aggressive.
China’s vegoil markets have been rising rapidly as reports of increasing consumer demand coupled with China actively booking palmoil imports. The big rally in prices there has spilled over into our soyoil and soybeans. Futures are now back to their best level since January and in a position to challenge the a monthly downtrend on the charts that goes all the way back to 2008.
President Trump announced a new $13B package of CFAP overnight that is expected to be outlined at some point today by the USDA. This second round of CFAP is designed to help cover farm losses related to COVID-19 for the period of April through December. The program will raise pressure on Congress to replenish the CCC with additional funding considering they will need approximately $7B for crop revenue payouts. The CCC is looking for reimbursement for around $30B in payments made to US farmers in 2019. If all aid is utilized it would raise the total government aid provided to farmers in 2019 to a record $50B.
Have a Safe Day!