Quiet, Sideways Trade Expected for Chicago Futures

Corn, wheat and soybean futures are likely to move just sideways in the coming weeks, waiting until the New Year to post any big moves, according to a US analyst.

“We’ll have some bigger (USDA) reports here in January. I don’t think the bottom falls out a bit, but I don’t see a reason for the markets to run extremely higher into the end of the year,” said Bryan Strommen of Progressive Ag in Fargo, N.D.

In its November supply-demand update, the USDA raised its 2021 US corn production forecast compared to October but reduced it slightly for soybeans. However, forecasted corn ending stocks still ended up slightly lower from last month while soybean stocks were raised. The USDA will release its next monthly update on Dec. 9, although the December report is not typically a major market-mover, with the USDA often preferring to wait until January to make any significant changes.

Chicago wheat is currently trading near nine-year highs, with corn at its highest since August. After a long decline from the late spring/early summer, soybeans are trading at the highest since the early fall.

Meanwhile, conditions internationally are mixed. The weather in South America has generally been good for corn and soybean crops, although the Australian wheat harvest is now being marred by too much rain and relatively low protein levels.

US markets will be closed Thursday for the American Thanksgiving holiday and will also close early on Friday.

Source: DePutter Publishing Ltd.

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