Volatility Remains High for Grains

Grains prices recovered ground lost the week prior.  Low stocks for corn and beans will continue to ensure volatility remains high as South America works through harvest and weather concerns.  Export demand remains strong, especially out of China.  The US Ag Dept confirmed additional corn sales to Mexico and Japan.  Soybean meal continues to attract strong export demand.  Analysts expect the USDA to report US processors crushed about 193.9 million bushels of soybeans in December, which would be in line with NOPA’s reporting of 183.2 million bushels.  NOPA members comprise close to 95 percent of the market.

Co-product prices pushed higher to begin the week.  DDGS values continue to rise as reduced ethanol demand keeps supply lower than normal while demand remains quite strong.  Wheat Midd values are also pressing higher in Minneapolis, but stable in KC and Buffalo.