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Dec 30, 2020

Grain Market Update - December 2020

By Megan Tusa - Grain Marketer

Happy Holidays from the Crystal Valley Grain Division!

Markets have been on a tear since mid-August. Lower ending stocks for both corn and beans and weather concerns in South America have kept the market on its toes.

We are 2 weeks away from the highly anticipated January USDA report where they will give us the final yield number and update quarterly stocks. Trade is expecting the stocks numbers to be bullish. For almost 6 weeks straight we saw export sales of beans and domestic demand is staying strong as crush margins remain good. Ethanol is the big question on the corn side- negative ethanol margins for Q1 2021 have processors contemplating if the plants should stay running or shut down for a period of time. The rail market for corn remains strong and Crystal Valley has a record number of trains on the books for this fiscal year.

As we continue to navigate through this very volatile market, remember to keep your break-even and profit goals in mind. We have reached levels on the CBOT that we haven’t seen in several years. Locking in profits on both old and new crop is a good way to keep the operation going. We always use the baseball analogy, but I think it’s a good one. Let’s keep making doubles, because if we wait for the home run, we may just strike out. Give any of the grain marketers a call, we would be happy to help you get your game plan rolling!

Happy New Year and we look forward to serving you all in 2021!

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