What’s Going To Drive ‘20 Corn Markets?
The current estimates for 2020 corn production in the US are the
biggest since 2016. (94.1 million acres)
Corn futures are likely to trade the expectation of a big corn crop
in the year ahead until, (or unless), something happens to
Export Values Set Our Price
4 million NT
0.3 million MT
Food Grade &
25% to 28%
of total acres
1 million MT
1.1 million MT
2.2 million MT
South American Soybean Prices
Brazilian soybeans are worth more than their American competition.
Ontario’s values are very closely correlatedwith prices in the US
U.S. : China Trade
Nearly 50% of the global soybean supply is consumed
American soybeans currently face a 25% tariff in order
to enter China.
It is factually incorrect that China will “have to” buy
Dead Pigs don’t eat. When 85 – 90 million hogs die
from ASF, it reduces soymeal demand, and therefore
the need to purchase soybeans.
Enormous market volatility created by one twitter user.
Can we capture those gains?
Our Portion of the Wheat Market
“wheat” news sometimes has too great of impact on cash bids.
Only about 12% of NorthAmerica’s wheat is soft red, and although
traders often “cross hedge” between classes, end users are pretty
limited in their ability to substitute classes.
Wheat Pricing Considerations
In Ontario, soft red wheat and corn prices always reach
the same level (in $’s per tonne), in August /
The carry has completely gone out of wheat futures.
It’s primarily the result of increased demand for soft
wheat pulling stocks out of storage. Longer term it’s
useful for wheat producers because those burdensome
stocks are no longer weighing on the market.