Markets are generally softer this Tuesday morning as the industry prepares for Friday’s USDA report. This much anticipated report will have the USDA’s annual crop production numbers, quarterly grain stocks report, and the WASDE supply and demand report. Along with that report, we are also waiting for the signing of Phase 1 of the trade agreement with PRC, which is set to happen in Washington DC on January 15th. Add that to a week of heightened world tensions after a US air strike killed Qassem Soleimani, an Iranian Quds Force Commander, and you could say we’ve had our share of market movers coming to the forefront.
Soybeans and meal are both lower this morning, but soyoil is higher. US Soybean processor bids are firm, as the end users are trying to get beans into the pipeline. Argentina’s government has decided that they will suspend their 3% hike in agriculture taxes, which still leaves the rate at 30% for soybeans. Soybean exports inspections are strong, about 201 million bushels ahead of schedule.
Corn is softer this morning ahead of the USDA reports on Friday. The Chinese government reported that it will not raise its annual low-tariff quotas for corn, wheat, and rice. These allow for imports of products at a 1% rather than the 65% tariff amount for imports over the quotas.
Weather is showing precipitation for the Eastern Corn Belt toward the end of the week and then some into the Plains in the 6-10 day forecast. Argentina is dry but showing some chances for rain today. 6-10 day forecast for Argentina is dry, while Brazil will see some moisture in the 11-15 day forecast.
As we all prepare for Friday’s report, be sure to get your orders in for old crop and 2020 crop.
Have a great day!