Friday January 29, 2021

• Just in the green so far this morning to cap off the week 
• Old crop corn testing new highs with no reason to back off with an impressive week of sales behind it 
  • Another large flash sale announced yesterday to China 
• Buenos Aires Grains Exchange lowered their 2020/21 Argentine soy production slightly yesterday from 46.5 MMT to 46.0 MMT 
  • Planting was wrapped up this week in lingering hot dry conditions
• Chinese Lunar New Year two week holiday begins next week – could the strong export sales this week be them front loading holiday season?
  • Could also be ensuring they are well covered in case there are some global COVID changes in the next two weeks – one thing we have learned in the past year is that it does not take a lot of time to make major impacts in the global economy 
• Another explanation as to the recent corn purchases could be that U.S. corn is easily the cheapest on the market  – by $2.00/ bu compared to purchasing their own Chinese stocks 
• At current harvest pace the bulk of Brazilian soybeans are not expected to be available until early March due to the delay in planting this winter