Special Market Update

The grain markets are acting more like The Grinch today than Santa Claus on December first. Commodities tried to recover early but couldn’t hold any gains throughout the day.

More rains throughout Argentina and Brazil and a favorable forecast may add to the bean yield and for now at least temper any further yield losses. China was quiet today also, but Brazil values have maintained their 3-5 dollar/mt discount to US. Funds took month end profits Monday as well, selling 15k bean contracts, 7k meal and 7k oil. Soybeans settled today at a two-week low.

Ethanol demand and margins continues to weaken as well. Ethanol futures were down two cents/gallon, increasing stocks with minimal production slowdowns. With a change in The White House on top of it the EPA may be drag their feet in an attempt with the biofuel mandate. Fuel demand is so variable in today’s ever changing COVID landscape, but demand is no doubt down. The holidays may increase travel, but state regulated shutdowns are also on everyone’s minds. E-Commuting has continued to climb as well as most forms of E-Commerce. Today also saw further fund sell off. Corn is reported to be below 240k now after at least 15k contacts were liquidated today following the 15k sold off yesterday. Export inspections were strong however, currently on pace to meet the USDA projections or just be slightly below. Values remain some of the most competitive globally.

Wheat saw fund liquidation of 10k contracts. NASS reported the final winter weather crop rating yesterday at 46 % g/e. This is up 3 points but down from the 54% average. Disappointingly Egypt purchased today from Russia and Ukraine.