Grain News: January 24, 2019 – Soft Markets This Thursday Morning
Markets are softer this Thursday morning as we continue trading without information from the USDA. Wall Street saw some gains yesterday as the dollar strengthens slightly. The U.S. Commerce Secretary Ross makes statements indicating that China will send a group of delegates to the United States to continue trade talks.
Corn prices have been trading in a narrow range for weeks now, which isn’t giving the US farmer much excitement to make sales. We’re still waiting on the USDA to release final production numbers for 2018, and farmers are trying to nail down their planting intentions for 2019.
Beans are down this morning as well, trading softer as the Senate is set to vote on two bills to re-open the government that aren’t likely to pass. Vegetable oil markets in Asia were higher, but soybean oil open interest was down 7,000 contracts yesterday. Farm Futures surveys report that farmers have intentions to plant 84.6 million acres of soybeans, down about 5.5% from last year, but up 2 million from USDA projections in November. The market facilitations payments getting into the hands of farmers has likely influenced their feelings on putting more beans in the ground. The forecast for Brazil and Argentina is dry, although they did receive small amounts of rain overnight. They’re about ten inches behind normal.
Cold weather is moving in to Wisconsin! Stay safe out there!