Happy New Year! Grain markets are trying to hold momentum with the government shutdown. Corn, Soybeans and Wheat all traded higher on the first trading day of the new year, with soybeans seeing a double-digit gain. On the overnight corn is up 1, soybeans were mixed, and wheat was up 2 to 5. There were rumors yesterday that China is back buying soybeans. There are also ideas that Brazil experiencing a dry December could reduce their expected yields. There is also the unknown of the size of the 2018 soybean crop, with the slow harvest and some acres not harvested. But with the government shut down we are lacking USDA reports to confirm any of the rumors.
Corn prices were a little higher overnight. Globally the corn exports from other countries are trending higher. Ukraine is at 11.5%, Russia’s last month’s total is 67% ahead of prior 5-month average. Brazil is fractionally higher for corn but up nearly 65% for ethanol exports.
Wheat is posting modest gains and hopes to reverse the weak trend of December trading. Above normal temperature and precipitation is favorable for most of the winter wheat growing region. Wheat could struggle unless less winter wheat acres were planted.
The next major USDA World Agriculture Supply and Demand Estimate (WASDE) is due to be out January 11th. It will likely be delayed, even if the shutdown ends soon they will not have enough time to analyze the data and get the report out. When the shutdown ends it could cause an overload of information being released in a short period and time which could cause a very volatile market.
With the holidays behind us, now is a great time to start putting together your marketing plans. Your Grain Market Specialist would love to get you started on the process. We have many contracts available to balance your marketing needs. It was a challenging harvest season, but we got though it together. Thank you for your business! Wishing you the best in 2019.