The 1st week of 2024
Not what we wanted to see!
For the week: March corn –10.5 cents, December 24 corn –9.5 cents, March soybeans –41.75 cents, November 24 soybeans –37.25 cents and March wheat –12 cents.
No rest for the weary or long positioned as the sellers continue to press on the corn and soybean markets for the 1st trading week of 2024. In reality, corn and soybeans have just been following their trend lower that started in mid- December. We thought that traders would be more apt to build in some long risk premium this week as we head towards the all important January WASDE report next Friday but maybe we will have to wait until next week. If we don’t see that reversal of price, what is the market thinking? Is the USDA going to bump corn production significantly because it is unlikely that they will cut demand as their current levels look reasonable and it could be argued that they may be too low for ethanol usage. Will the tight domestic soybean balance sheet not equal higher prices? Brazilian production estimates are being cut but since you are starting at such a high number that we need to lose 15% of potential production to find a supportive level when you consider the rebound that Argentina is likely to have you are still looking at higher overall production than last year. No matter how you look at it, we expect to have a lot of price action next week. NFC Grain Afternoon Comments. (35)