Grain Exchange

 

The major theme from last Friday’s report is that the trade ignored the US corn yield increase and larger ending stocks for a couple of reasons.  The first is that the USDA stated that a re-survey of the slowest harvest states will be done but gave no indication when those results will be released.  The second was that the demand numbers did not include any projections from the Phase 1 trade agreement. The trade decided the demand numbers were too incomplete (particularly for corn) to be relevant. Wednesday will see the next big event with the signing and full disclosure of the Phase 1 trade deal and potential Chinese purchases.

 

Corn prices moved nearly 1% higher Monday despite a tepid round of export inspection data, fueled by some technical buying and short covering. March futures rose 3.75 cents to $3.89, with May futures adding 3.5 cents to $3.96.

 

Soybean prices lost about 0.5% Monday on some technical selling partly spurred by yield-boosting weather forecasts in South America. Lingering concerns over U.S.-China trade contributed additional headwinds. January futures dropped 5.75 cents to $9.29, with March futures down 3.75 cents to $9.42.

 

Wheat prices took a moderate spill Monday on a round of technical selling and profit-taking, although a decent round of export inspection data from USDA yesterday morning kept losses somewhat in check. March Chicago SRW futures dropped 2.25 cents to $5.62.

 

U.S. Treasury Secretary Steven Mnuchin assured America Sunday that the original commitments the Chinese agreed to in the Phase 1 trade deal would be upheld as the revisions to the agreement are being finalized. China agreed to purchases $40-$50 billion worth of U.S. agricultural products over the next two years and is expected to sign a formal agreement on Wednesday in spite of their refusal to change import quotas on grain last week.

 

Your Grain Marketing Specialists at Landmark have begun putting together grain marketing plans for this year for some of you already. The first step in marketing is to know your break evens! Your Landmark agronomist should be able to assist you in putting together the numbers you need to be successful and confident in your marketing plan. We have lots of marketing options to cater to your specific operation and needs for cash flow. Give us a call!