A counter-seasonal rally in grain prices allowed U.S. grain elevators to capture strong margins on the stored crop. Elevators were also able to sell a stronger basis into the marketplace. That’s according to a new report from CoBank’s Knowledge Exchange Division. “Grain has been flowing with considerable momentum over the past few months,” said CoBank senior economist Ken Zuckerberg. “It’s followed an orderly fall harvest and a strong price rally. This was an unexpected price rally and strong export demand with China.” Zuckerberg says this year ended differently than expected. “It goes to show you, things can turn on a dime. The export demand picked up and there was increased demand by local processors.” Economists are cautious going into 2021 with the potential for more corn and soybean price volatility.
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