StateLine Cooperative Afternoon Comments January 22ND
Today saw a major selloff across most commodities. Concerns are that the new strain of COVID will spread much faster than the current strain. Wall Street retreats from recent record highs on economic weakness in Japan and Europe, along with fears that the Virus aid relief package of $1.9 trillion may meet resistance from republicans in Congress.
Corn North Burt: down 24 $4.70
The corn market tumbled on outside influences and beneficial moisture pegged for SA this and next week. The March contract tested $5 support level, dipped below that but failed to hold. The healthy estimated fund length in the corn market, left it vulnerable to liquidation.
Soybean: down 58 @ $12.58
The soybean market took a beating on big crop ideas in Brazil and fund selling. Prices drew additional pressure from weakness in the energy and equity markets. Scattered analysts estimates for Brazil ‘s soybean crop are coming in above 130.0 mmt (if realized, it would be another year of a record soybean crop).