September 4, 2020

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘20 347’2 +2’6 Sep ‘20 318’0 +5’0
Dec ‘20 358’0 +4’2 NC ‘20 313’0 +3’0
Mar ‘21 368’4 +3’6 Dec ‘20 317’0 +4’0
May ‘21 374’6 +3’2 Jan ‘21 324’0 +5’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Sep ‘20 969’4 +0’6 Sep ‘20 908’0 +2’0
Nov ‘20 968’0 +2’0 NC ‘20 894’0 +1’0
Jan ‘21 973’4 +1’2 Dec ‘20 908’0 +2’0
Mar ‘21 973’6 +1’0 Jan ‘21 907’0 +2’0

 

Grains finished higher today to close out the week strong ahead of the long holiday weekend

Corn is in an uncertain spot between lost production from drought and storms & lost ethanol demand

In a year with typical driving habits, corn would be rallying more from perceived losses from drought

The question remains over lost production/reduced harvested acres due to the derecho

Brazilian corn production estimates will likely be revised higher in subsequent USDA monthly reports

Strong profits and a currency that seems to only get weaker makes pushing for high yields the norm

The unknown is China. Are they cleaning out old inventory or rebuilding supplies due to food inflation?

The USDA announced today the sale of 318k metric tonnes to China

The US remains at a price advantage vs Brazil into China through November

Expect large purchases to continue as grains are cheap & China attempts to meet Phase 1 obligations

Brazilian production is expected to increase in ‘21 as well with acreage expansion due to strong profits

September 4, 2020