Morning Comments January 26, 2021

Aerial Farm Land

Markets continue to bounce back this week, following last week’s big technical decline. Weekly export inspections yesterday showed solid port loadings with corn 55Mln, beans 73Mlmn, wheat 19Mln, and sorghum 7Mln. Japan was the leader in corn destinations, China the leader for beans and sorghum. YTD % of USDA projected exports that have shipped stand at 29% corn and 75% beans. Corn will have some big export weeks coming with the amount of unshipped sales that are on the books, particularly when soybean loadings start to slow down. 

New administration has reversed course in many areas via executive action. In regards to energy, moves have been made to make the US less energy independent. This will support crude oil, and subsequently corn and ethanol. The outstanding biofuel waiver requests have not been addressed yet. 

Next monthly WASDE supply/demand report is two weeks from today, Feb 9. These monthly reports will cause more anxiety than normal given the already tight ending stocks situation. 

Opening Calls:

Corn: up 5-10c

Beans: up 15-20c