Grain Exchange 3-12-20
With all the breaking news surrounding the virus it is easy to see why grain markets are lower today, markets in general moving that direction. Asian equity markets down, European equity markets lower and of course our domestic market experienced a decline. Travel bans and reducing travel is certainly not bullish energy/ethanol. As we move through the virus issue, we will still need to define S/D, watch the northern hemisphere planting progress and restock diminished supply where virus interruptions have occurred.
China published a list of 88 U.S. suppliers that can now export DDGS to the country. This indicates that China will allow imports of US DDGS for the first time since 2017. This follows talk this week that China is interested. This week printed strong corn and Sorghum sales while wheat was a disappointment. Soybean exports sales included Chinese net cancellations. No USDA sales announcements this morning. Ethanol stocks where lower this week as well. Rosario Grain Exchange lowered their estimate of Argentina’s soybean crop and held corn steady.