March corn up 5 ½ at $3.8325
Jan beans up 13 ½ at $9.1175
The DOW is up
USD is weaker
Crude oil up $.69 at $59.87
Corn prices are getting a boost as rumors and talk of trade deal circulate. There have also been some strong export sales reported this week. Just yesterday, the USDA reported that private U.S. exporters sold +1.6 MMTs of corn to Mexico, which was the fifth-largest one-day sale ever. South America remains mostly mixed, with talk inside Brazil that its total crop might be working its way higher as producers eye strong cash prices and fairly cooperative weather. On the flip side, Argentina should have close to 60% of its corn crop planted by this weekend, but there are still many areas battling dry conditions. From what I’m hearing, about 40% to 45% of the Argentine crop is rated “Good-to-Excellent.” The trend for March corn is negative. A drop below 371 signals a test of the contract low (365.75). Closing over 385.75 is the minimum needed to produce corrective action.
Soybean bulls are talking about a U.S. and China trade deal along with strong U.S. demand. Bears are talking about cooperative weather in Brazil and perhaps another record-setting crop. The question is, have Chinese importers purchased their fill of U.S. soybeans? There’s some talk that Chinese buyers have purchased what they need from the U.S. and will soon start turning the majority of their attention to the record soybean crop soon to be harvested in Brazil. The trend for January beans is neutral. Stable trade outside 889.5-902.5 will provide fresh trending targets.
Ag Secretary Sonny Perdue announced the availability of a second round of $550 million in United States Department of Agriculture (USDA) Reconnect Pilot Program funding. These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. The application window for this round of funding is set to open Jan. 31, 2020 and will close no later than March 16, 2020