Grain Exchange – 5/7/2020
Don’t be afraid of what might go wrong, but get excited about what could go right.
Grains are starting the morning trading higher. Planting pace is on the fast track right now. US trade rep Bob Lighthizer and Chinese Vice Premier Liu He plan to meet next week about implementation of Phase 1 agreement. When Trump was asked about the trade agreement he reported that he would have more to report at the end of next week, so stay tuned. The cold snap forecast with a chance of frost is more concerning for the wheat market than for corn.
Corn is finally getting some positive news on the demand side. Weekly export sales were neutral at 30 mln bu., but USDA announced a sale of 686,000 MT of corn to China this morning. Gasoline consumption is on the rise. Ethanol production is starting to increase but it remains down 42 percent from year ago levels. The meat plants are increasing production but at a slower pace, which is backing up animals to be processed. This may affect long term feed demand.
Wheat is higher with news of trade talks and possible frost in parts of eastern SRW growing areas. The EU and Black Sea as well as HRW areas in the US are in need of rain. Export sales were neutral.
Soybeans are trading higher on news of China talks and some talk of more sales out of the Gulf that should be reported today or tomorrow. Traders are looking for China to ramp up purchases in the August September time frame, which is typically when South America runs out of beans.
Please reach out to your Grain Marketing Specialist, we are here for you.
The true faith of a farmer is shown by the planting of the fields.
Stay strong and be safe.