August 28, 2020

Corn

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘20 346’0 +1’6 Aug ‘20 321’0 +2’0
Dec ‘20 359’2 +0’6 Sep ‘20 312’0 +7’0
Mar ‘21 369’2 -0’2 NC ‘20 313’0 Unch.
May ‘21 375’6 -0’2 Dec ‘20 318’0 Unch.

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘20 950’4 +13’2 Aug ‘20 896’0 +9’0
Nov ‘20 950’4 +8’4 Sep ‘20 891’0 +9’0
Jan ‘21 956’2 +8’6 NC ‘20 874’0 +9’0
Mar ‘21 956’2 +8’6 Dec ‘20 890’0 +8’0

 

Grains continued their march higher today with more focus on weather issues and increased demand

The leftover precip from Hurricane Laura that potentially could hit the Midwest didn’t materialize

The focus remains on a crop that is shrinking in size, not growing.  That changed in a few short weeks

With renewed demand from China for corn and beans, traders are trying to guess what imports will be

China is buying corn multiple dollars cheaper per bushel than what their domestic price is currently

They can essentially print money by importing corn from the US and sell it internally

China also seems intent on at least trying to meet its obligations in the Phase 1 trade deal

Technicals on the charts are also fueling the rally in commodities in a contra seasonal rally

Funds are long beans and are approaching near even on corn positions, which is quite a feat in itself

Trade next week will start to focus on early harvest results & further export demand

August 28, 2020