MarketEdge PM Comments

(Cody Forde)

Good afternoon,

Corn and soybeans traded both sides of the coin today. March corn’s last trade was 4.75^6 up 2^2. January soybeans traded 13.47^2 up 0^6. Today we watched in awe at the December 2023 spread with March 2024 corn widening out to -27^2 cents. That is the most carry I have EVER seen in my career. What does this mean for the future of spreads in the corn market and how does one manage the opportunity? One of the best strategies is to simply sell the carry and roll contracts ahead or make cash sales into the future while carries are wide. By working with your grain originator, you can determine the best strategy to fit your operation.  

Not much has changed regarding the South American weather story. I think the funds are getting tired of trading weather map to weather map. If rains do dry out, I could see us going and testing the upper limits of the range for January soybeans. I think it will be very hard for them to close over the 14-dollar mark unless we see a long-term threat.  

• December corn spread highlights of today. High was -21^2, Low -27^2, and last trade of -26^4.
• Crude oil and RBOB both traded higher today
• The US Dollar closed slightly higher