Market update: Corn, soybean organizations share outlook

INDIANAPOLIS — There are a mix of positive signals and challenges ahead for corn and soybean growers this year.

The Indiana Soybean Alliance and Indiana Corn Marketing Council provided a market update.

At a glance:

• Recent sales of corn and soybeans to China and other destinations have been helpful in stabilizing prices.

• Recovery in crude oil prices is beneficial to corn and soybeans.

• We’ve had above average corn and soybean planting progress to date, which is improving farmers’ mood.

• Balance sheet outlook for corn going forward is bearish, as corn stocks grow by over 1.2 billion bushels, according to U.S. Department of Agriculture projections.

• The balance sheet outlook for soybeans is better, with stocks declining by 175 million bushels.

• Much of next year is dependent on China’s execution of “Phase 1” trade.

“Some of the repercussions we’ve seen from COVID, whether it’s demand destruction in terms of ethanol because fewer people are driving cars, have impacts on corn demand,” said Ed Ebert, ISA director of grain marketing.

“One of the bright spots that’s occurred here recently is that gasoline prices are going higher, which means crude oil prices are recovering. If we’re not selling gasoline, by proxy we’re not selling ethanol.

“This is a good thing for thing for the marketplace in general and commodities as a whole.”