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Brazil and China. Those are really the only two talking points for the soy/grain markets this morning, particularly seeing the government offices are on an extended and unplanned hiatus. In case you had not heard, the scheduled January 11thfinal production and supply/demand reports have been postponed indefinitely. Concerning the first, rains have remained sparse in Brazil, and we are beginning to hear more and more reductions in crop estimates. While I would not classify it as a race to the bottom just yet, I have now seen projections as low as 113 MMT. As far as China, or at least trade negotiation with China, those are currently underway and are set to extend into tomorrow. While no one that I am familiar with knows what the outcome may be, the tone from both sides leading up to the meetings was encouraging. Combined, these two factors have helped extend the bean market, and by association corn, into higher highs for the swing, but just how much more we can squeeze from the news is questionable.
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