1/13/2021
Jeremy Vander Vorst, Grain Marketing Specialist
January 13th Agtegra Morning Market Insight

Corn: As of 7:45 2-18 Higher
Corn will have expanded limits of 40cts today as we had a limit move yesterday. Corn prices in China are also on the move higher as Dalian corn traded to a new contract high of $11.37 per bushel. The USDA report had plenty of ammo for the bulls as feed use was increased 76 million bushels for the 19/20 year. They also adjusted the yield down 3.8 bpa which is a drop of 325 million bushels with bid drops in MN 10bpa and Iowa 6bpa. USDA also lowered exports 100mbu, ethanol 100mbu and feed 50mbu which made a net adjustment of 150mbu lower ending stocks.

Soybeans: As of 7:45 Unchanged-5 Higher
USDA dropped soybean yield .5bpa to 50.2bpa taking the crop size to 4.135 bbu. Imports were raised 15 mbu and crush raised by 5 mbu along with raising exports 30mbu for ending stocks of 140 mbu. World ending stocks down 1.3 mmt which are now close to 11 mmt lower than last year.  Conditions in Brazil have turned more favorable however pockets in the south and northeast have turned drier.

Wheat: As of 7:45 4-7 Higher
The wheat report did not have as much bullish news but garnered support from the row crop markets. Global wheat prices continue to move higher as new tenders have been released daily. Winter wheat acres planted were up 4% versus last year at 22.3 million acres. Total US wheat carryout was adjusted lower by 26 million bushels with most of that attributed to feed/residual use. Global production for 20/21 was decreased 1 mmt to 772.6 mmt which is still a record.