Soybeans strong start to the week
Soybeans closed higher. Basis remains strong as soybeans continue ship and be crushed in strong volumes with the recent rally in meal. Weather and demand news are both bullish heading into the holiday with the ongoing Argentine port strike. Reports say Argentine exporters shipped just 25% of December soy meal commitments and only 14% of bean oil commitments, moving business to the U.S. soybean planting has reached 96 percent complete in Brazil and weather reports show more short-term rain in the forecast. Light competition from Russian soybean exports to China might add some downward pressure to the market. Argentina remains dry hurting its soybean crop.
Corn finished the day steady to higher with sideways ethanol demand keeping margins tight. Weekend news of a COVID-19 aid package is on the bullish side of the market but a possible new strain of the virus in the UK has seemingly offset any positive movement. Demand from China continues to be a market driver for corn as the country’s hog herd numbers increase. Expected rain in Brazil might add some downward pressure to the market but also could be balanced out by dry weather in Argentina.
Wheat closed higher. Russia’s forecast for wheat exports this marketing year have dropped by 2.5 million tonnes to 37.5 million. The forecast fell because of Russia’s wheat export tax and expectations of a weaker 2021 crop.