Dec’20 corn futures fell to new contract lows below $3.50 this morning as the market shrugged off last week’s China sales and continues to reel from the Prospective Plantings acreage report that indicated producers intended to plant 97 million acres to corn this spring. Additionally, ethanol demand destruction continues to reverberate through the country as plants idle in this negative margin environment.
Nov’20 soybeans are currently trading up 4 1/2 cents/bu at $8.66 while wheat continues to be the most buoyant, trading from up 3 1/2 to up 7 cents on the day. Egypt’s GASC is revising its tender terms suggesting they are serious about building strategic reserves. Food security remains a primary concern for importing countries given the possibility of quarantine-related logistical disruptions. Demand for food continues to outpace demand for fuel, driving the wheat/corn spread wider. Another supportive factor for wheat is the dry forecast for Russian winter wheat areas.