Chinese purchases favoring Brazil

By Doug Tenney, Leist Mercantile

Jacob the cat has learned a new trick. My sleep is often interrupted, and when returning to bed I find Jacob has moved to the center, taking advantage of the warm spot I left behind. In the coming months it will take supply or demand surprises to warm producer’s psyche with current corn and soybean prices.

Traders were surprised with the Nov. 8 WASDE report which detailed a decline in the 2024 U.S. soybean yield of 1.4 bushels per acre, now estimated at 51.7 bushels per acre. In addition, soybean ending stocks were reduced by 80 million bushels to 470 million bushels. Within minutes, those two bullish factors were responsible for January 2025 CBOT soybeans quickly spiking double digits higher, reaching $10.44, up 18 cents from the previous day’s close. However, they failed to close above strong resistance at the then 100-day moving average of $10.41, instead closing at $10.30, up just 4 cents on the day.… Continue reading