The holidays are often a quiet time in grain markets, and the Christmas and New Years celebrations of 2021 will be no different.
Price Futures Group analyst Jack Scoville said the annual trend of turbulent grain markets is expected to continue as low volume and trader activity take hold, with little information to be learned from the price action. .
âIf we’re in a sideways pattern, I don’t think we’re learning much,â he said. “Overall I think prices are likely to go up, but in the next couple of weeks I’m not sure if we’ll find out straight away.”
Soybeans were up sharply for the week ending Dec. 17, as demand and grinding reports all favored the market. This positive move is part of Scoville’s reason for optimism going forward.
âIf we can build on that, the prices will go up,â he said. “Otherwise, we’re probably going to cut between $ 12.45 and $ 12.90, or in that area.”
While demand for soybeans has seen an increase, demand for corn has also been excellent, Scoville said. Ethanol markets show strong production amid ideas that the omicron variant of COVID-19 will have less impact than expected. Lower impact means more vacation travel and increased domestic demand.
âThe demand for corn has been excellent,â said Scoville. âI think it’s going to continue. Even if the demand for gas is fluctuating, the demand for ethanol will be strong. I am hopeful of the demand from this region. For corn, they’re really holding back the market now. “
Demand for corn has also remained strong globally, remaining stable with USDA targets, but Scoville said it could slow in the second half of the marketing year. Wheat and soybeans have not had the same success in world markets recently, giving increased importance to corn markets.
âCorn will have to be a leader on the upside,â Scoville said. “The beans are probably going to need help with the weather in South America or something to keep the market going.”