Dec 18, 2020

Demand, Weather Risk Add Support Going Into Weekend

Hefty export demand continues to support ag markets

Weekly Export Sales Beat Expectations

  • Soybean sales last week of 34 million bushels were the largest in a month, up from the previous week's 21 million bushels.
  • China has bought 1,150 million bushels to date compared to 386 million last year.
  • Total outstanding sales to “unknown” are 268 million bushels versus 121 million last year.
  • Corn sales were above market expectations at 76 million bushels, up 44% from the average of the last four weeks.
  • Mexico remains the biggest corn buyer, with China also purchasing a few cargoes.
  • Wheat sales were solid at nearly 20 million bushels, close to the top end of expectations.
  • Upland cotton sales of 402,900 running bales were up for a second consecutive week on increases primarily for China of 225,800 bales.

FBN’s Take On What It Means: Hefty export demand continues to support the ag markets. USDA will likely continue to increase export projections which will further tighten ending stocks and potentially lead to higher prices.


Argentina Crop Progress Update as of December 16

  • Argentina’s soybean crop rating slipped again to 50% rated good to excellent; that is down 5 points from last week and 3 points versus last year.
  • The crop was 68% planted, shy of last year’s 70% and the average at 75%.
  • Soybean plantings advanced 11 points for the week.
  • Corn conditions were steady with 24% rated good to excellent but that remains well below last year’s rating at 42%.
  • Plantings were 55% complete, up from 47% but remaining below the average pace, which is at 61% for that week.
  • The wheat crop was 66% harvested, in line with the average pace.

FBN’s Take On What It Means: All eyes are on Argentina and weather developments there. The weather has mostly been unfavorable overall with dryness remaining a feature. Rains are in the forecast for the weekend but they are scattered and not offering full coverage of the especially dry areas. It still is early in the production cycle but for now, risk is that production levels could be lower than current projections.

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)
The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.

Kevin McNew

Recently Added to Buyer's Guide

VersaMix Triple Shaft Mixers

  • For mixing applications requiring efficient powder dispersion and critical homogenization of medium to high viscosity slurries, pastes, gels, creams and suspensions
  • High-shear mixer with solids/liquid injection manifold (SLIM) technology rotor/stator

GUC-F Controller

  • Multichannel feeding and dosing controller
  • Control solution for feeding and weighing applications in powder handling applications
  • Flexible and modular design with analog and digital load cells


  • Offers accurate and reliable continuous mass flow measurement of bulk solids with an accuracy of +/- 0.5% full scale
  • Measures mass of flowable solids with densities of 10 to 100 pounds/cubic foot and flow rates from 700 to 7,000 cubic feet/hour


  • 10.1” touchscreen
  • Easy to install in new or existing systems

Sanderson Farms Feed Mill Expansion - Kinston, NC

  • Construction of a whole grain silo expansion (76’ diameter x 145’ tall) to hold 500,000 bushels
  • Expansion also includes a 12’x17’x22’ deep boot pit extension at the end of the existing receiving tunnel

Horizon Feed Ordering Automation Platform

  • Automates many processes within supply chain for efficient, sustainable and profitable production
  • Manage all bins and orders on a single software platform


Marketwatch: Jan, 18

US Corn Price Idx: ZCPAUS.CM

open: 5.7667
high: 5.8486
low: 5.7266
close: 5.8288

US Soybean Price Idx: ZSPAUS.CM

open: 13.366
high: 13.376
low: 13.2328
close: 13.2696

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.3061
high: 7.3384
low: 7.2334
close: 7.2454

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.0114
high: 7.0566
low: 6.9566
close: 7.0014