Grain News – Markets Sparking Upward Movement
As February is winding down the markets seem to be trying to spark some upward movement. Currently corn, soybeans and wheat are all trading higher. The market is getting ready for a series of news the next two days that can clarify price movements for the 2019 crop.
Negotiations are continuing between the U.S. and China. Leaked news this morning claims that they are working on a Memorandum of Understanding that China would buy $30 billion per year more of U.S. ag products than pre-trade levels. In 2017 they bought $24 billion so it would increase to a total of $54 billion to be spent on ag commodities specifically stating corn, DDGS, soybean and wheat.
USDA is expected to release information on the ag economy and give an updated forecast for 2019 acreage at its outlook conference. They will also release more supply and demand estimates on Friday. Friday’s expected dump of data should get the export sales data caught up from the government shut down.
Corn is seeing support today based on the comments made about the talks with China. Corn appears to be too cheap to attract more acres which should increase chances of a rally. Weather currently isn’t a factor right now but may be in the coming weeks.
Soybeans are showing some gains this morning on hopes of an end to the trade war. Market is continuing to watch South America expected yields. Continue to keep an eye on any upswings in the soybean market and start making some new crop sales.
Wheat has had a tough week and no real fresh news to get the market motivated higher. U.S. wheat continues to be priced too high to spur new interest for export sales.
Now is a good time to look at your marketing plan for remaining old crop and new crop bushels. We are ready to help you incorporate different contracts to help maximize your average for crop sales. Take a look at our average price contract for some of your new crop bushels. Deadline to sign up is March 15th. Averaging period runs March 18th through July 12th. Your grain marketing specialists are ready to be your partner in your grain marketing journey.