Farms.com Home   Ag Industry News

Santa rally unlikely for grain prices

Santa rally unlikely for grain prices

Price increases in November may have ended the chances of a December rally, a commodity strategist said

By Diego Flammini
Staff Writer
Farms.com

Cash crop producers hoping for Santa Claus to bring them higher grain prices near the end of the year may not get what they’re asking for.

November price rallies saw soybeans inch towards $12 per bushel, wheat prices rose to more than $6 per bushel and corn prices touched $4.30 per bushel.

Those points may be as high as commodity prices go for the remainder of the year, said Moe Agostino, chief commodity strategist with Farms.com Risk Management.

“November’s performance may have stolen the party,” he said. “The month of December can be strong, but (commodities’) performance over the past four months says the easy money has been made, so it will be harder to rally from here.”

Weather in South America and demand for corn will be key drivers for crop prices moving forward, he added.

Heading into 2021, the Jan. 12 USDA crop report could have some positive numbers for farmers.

“The report could be another bullish surprise with lower yields and higher export usage,” Agostino said.

News outside of the ag sector could also affect grain prices.

COVID-19 vaccine prospects and the U.S. election results can help provide stability.

“Policy and trade are very important,” Agostino said. “So is a recovering global and U.S. economy.”

If farmers are thinking about selling grain now, Agostino suggests keeping some aside in case prices improve.

“If you need the money, manage the risk and reward gift,” he said. “But keep some bushels dry in the event prices head higher in 2021.”


Trending Video

Trump-Xi Meeting in 4 Weeks BULLISH + USDA Sept 1 Stocks Report Bearish!

Video: Trump-Xi Meeting in 4 Weeks BULLISH + USDA Sept 1 Stocks Report Bearish!


Trump's post about a meeting with XI in 4-weeks with the main topic of discussion the soybean trade was bullish offsetting a bearish USDA Sept. 1 Quarterly Grain Stocks Report that found 200 million more bushels of old crop 24/25 U.S. corn bushels.
The U.S. government shutdown is just more noise, but it does mean no USDA October crop report next week delaying the 2025 U.S. yield forecast by a month. Stocks have traded to new record highs suggesting the shutdown will be short lived but instead continue to chase the AI story.
Trump will announce next Tuesday support for U.S. farmers in the tune of $10 billion. In 2018 the U.S. soybean farmer got $1.65/bu in MFP payments and in 2019 $2.05/bu.
WTI crude oil is breaking below a key support and pivot point at $61.74/barrel.
2025 December corn futures creating a head & shoulders bottom formation.
With Chinese U.S. soybean purchases at 0 for the 25/26 marketing year the trade thinks the rest of the world is filling the gap but it’s worse than 2018! With no weekly U.S. export sales report due to a U.S. government shutdown U.S. corn exports were still estimated at record strong levels.
The trade thinks that 2025 Canadian Prairies canola production is closer to 21 MMT and an average yield of 42 bpa but very large farmers in the garden spot of SE Saskatchewan are reporting below average yields and production to fall back to 19 mmt???