Markets calmed and finished mixed yesterday after a quiet day of news about the coronavirus and mostly higher world equity markets. Solid progress appears to be being made on containment and treatment in China to help soothe the nerves of an exhausted trade. Today’s export report could be a good spark if numbers continue last week’s strength.
Some things you cannot make up. Not only do we have global concerns of the coronavirus but a plague of locusts (seriously) is moving across northern Africa and expected to triple in size before reaching India in a few years. Lord have mercy, what’s next!
Corn prices tilted lower yesterday on a round of technical selling that pared some gains picked up earlier this week. Expectations for another bullish round of export data from USDA limited losses yesterday, but longer-term demand concerns still linger. March and May futures each spilled 1.5 cents lower to close at $3.80 and $3.86. Ethanol production for the week ending January 31 jumped moderately higher, reaching a daily average of 1.081 million barrels, the highest output in three weeks.
Soybean prices finished a choppy session yesterday with fractional gains on cautious optimism that Chinese purchases will pick up, although expectations for a lackluster round of export sales data from USDA expected this morning kept gains to a minimum.
One of our most popular contracts “The Average Grain Pricing Program” is now being offered. I use these for both corn and beans in almost all my marketing plans. They have done very well the last few years that we have offered them. We have designed it to get an average price established during the seasonal trend for higher prices. This is for new crop only and runs March 16 through July 10th. Contact your grain marketing specialist for more details.
Have a great day,