What is in store for the corn, soy and wheat markets this spring? With the USDA Prospective Plantings report out, we have our first look at producer planting intentions for 2021. How did Covid-19 impact the market? What does this mean for the crops this year? How about supply? How does the weather look? How will Covid-19 continue to impact demand? What does this mean for prices? We will try to answer these questions in our Spring Crop Outlook.
- As China increased their demand for livestock, their soybean import numbers also rose, to the tune of 13%. Unless something crazy happens, this trend could push US Soybean bushel projections higher by 50 million bushels.
- China has been one of the biggest buyers of US corn for the 2020-2021 crop year and that trend looks to continue into 2021-2022. The USDA Sales Export Report shows that China purchased 151,197 tonnes of US corn during the week of Jan 7, which was up from 90,424 the previous week
- The wheat market remains in a steep uptrend, having seen significant gains sine the 2020 harvest low on June 26. Tightening US and world ending stocks have been providing underlying support. The world supply is still large and it would take a huge influx of bullish news to push prices above January highs.