Pinion Update January 29, 2021

Pinion Update January 29, 2021

Good morning. I’m Darin VanVactor with Pinion, division of K-Coe Isom. The grain markets as a whole have had a different look after the long weekend. For the first time in a while, we’ve had a few consecutive down days. In some other circumstances, this would look more burdensome. But right now we are sitting in the upper ranges of the last five years for corn, soybeans and wheat. It is definitely worth noting there is a potential fundamental reason for the move, as South American weather has been closely monitored and heavily debated. One can find a narrative for either side of things regarding conditions. It appears soybean bulls took some risk off the table this week, as the forecasted rains fell, improving the overall soil profile for the time being. The South American crop, specifically soybeans, will be watched closely regarding its impact on world supply. Corn held most of last week’s gains, as the USDA tightened ending stocks a little more than folks expected but did come off the recent highs due to the South American moisture headline. Wheat continued its rally after the report as Russia bumped its export tax higher. There is a potentially bullish headline looming regarding weather, with a good chunk of wheat country lacking moisture. The situation will become more pressing as wheat breaks dormancy. This recent rally has opened up a lot of opportunity. It might be time to take advantage. Questions, give us a call, 452-8751. I’m Darin VanVactor. Be safe, and have a great week.

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