USDA reports further ignite grain rally
- By Brady Sidwell
- Jan 17, 2021
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Grain markets continued to be excited this week from anticipation for and the result of USDA monthly reports that were one for the record books. This included a record drop in November to December corn production, record shortfall in Dec. 1 U.S. corn stocks versus trade expectations and record U.S. corn feeding in the first quarter. In fact, the trade missed pre-report corn stock guesses more than ever in history.
Wheat had additional support from news of Russia’s proposals to double to 50 euro per tonne starting March 1 already intended export taxes of 25 euro per tonne starting Feb. 15 on wheat to curb domestic inflation and extend such taxes through the next marketing year starting on July 1.
Egypt cancelled its wheat tender due to the surge in prices.
China buying late week also supported wheat markets despite some profit taking Friday in corn and soybeans as more rains were seen over the weekend in South America.
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