Grain News – Nervous Market on the Big Bean Supply
It is the day of the long-awaited report of final production numbers, wheat seeding and supply and demand for February. The market has been up and down. Get your offers in ahead of the report.
Corn is stuck in the 3.78 March 2019 and 4.02 Dec 2019. The US sold 20 million bushels of corn in the week ending 12/27, down from 67 million in the week ending 12/20. Top buyers during the holiday week were Mexico, Columbia & Peru. The report is expected to provide some much-needed fundamental direction for corn.
The market is nervous about how big the bean supply. Look for movement treading down. China is on their Luna New Year. Trump is stating highly unlikely the meeting with Chinese President Xi Jinping before March 2 deadline. Senators urged Lighthizer and President Trump to not terminate NAFTA until the new agreement (USMCA) is analyzed and passed by Congress.
Another negative economic data point from Germany and a lowering of their GDP growth forecast by the European Commission has pushed EU and US stock markets lower this morning. The dollar index is higher while the Euro has fallen from $1.1525 to $1.1325.
Make sure to have your offers in on old and new crop bean and corn. We never know what the USDA is going to say and how the market will react to the news.
Be safe out there.