A Midwest-based commodities broker says, “(It) looks like the way to go is up,” and the Monday trading session ended with gains in both corn and soybeans.
Greg McBride, commodities broker with Allendale, Inc., says the markets – commodity, equity, and financial – were fueled by a COVID-19 vaccine trial update.
“Pfizer’s vaccine trial has so far produced a 90-percent efficacy, which looks fantastic. The markets got excited,” McBride says. “You saw (soy)beans go up 15 to 16 cents, corn go from four cents lower to a couple cents higher, and the same thing on wheat.”
McBride expects commodity markets to see further upward movement, as the U.S. Department of Agriculture on Tuesday releases its November World Agricultural Supply and Demand Estimates (WASDE) report.
“The excitement surrounding demand, specifically out of China, should help push things forward,” McBride says. “We’re looking for a drop in ending stocks for corn and bean, due to the good exports we’ve had. We’re also looking at dropping the yield numbers on both corn and beans, which will bring down the production numbers.”
McBride reminds producers, “We have good prices at a time (when) we don’t normally see good prices,” and recommends taking advantage of such prices.
