Is this what inflation looks like?
Soybeans were up over 30 cents early in the session yesterday before falling back a little finishing 25 cents higher. Corn was dragged along finishing 4 cents higher. Fundamentals are not supporting this last leg up. Funds are active buyers and that looks to be a function of an inflation play. Balance sheets are not that tight even though the cash markets are incredibly strong in many areas the futures market act like tightness will carry into the new year. This may be what inflation looks like and could maintain a big cushion under prices until the cash market backs off. Weekly exports were slightly better than expected but mostly inline. Watch yesterday’s highs of 589.5 in March corn and 1289.25 for Jan soybeans. NFC Grain Comments 11.18.21 (1)