Monday January 4, 2020

• CBOT began pushing higher Sunday after weekend weather in South America sparked some concern 
  • Brazil received less rain fall than expected and Argentina and Southern Brazil remained as expected, dry with high temps through both countries 
• Growing demand with tight stocks is motivation for the CBOT to try to find a value that would cause demand rationing – so far is yet to happen 
  • The U.S. simply cannot maintain its export pace for soybeans as it has been going or they would run out of beans
  • Corn export program also looking more robust this morning as Argentine offers disappear
• Mexico put forward a ban on GMO corn starting by 2024 – there is still uncertainty if this is just meant for human consumption corn or if it includes corn used for livestock feed – there will be no impact on 2020/21 Mexico imports 
• Expectation for higher corn acres in China for 2021 – no estimates yet available but it is agreed they will be higher than 2020