Morning Market Insight

1/24/19
Casey Schlechter
Grain Marketing Specialist

 
Corn: Steady
Light trading in the corn yesterday with the change just south of unchanged. President Trump’s economic advisor denies rumors that the US/China talks are in Jeopardy but did little to pump life into the market. Chinese corn imports are up 25% from a year ago and at their highest level since 2015. Informa increased corn acreage 400K from last month to 91.504. This would mean a 2.36 million acre increase from the USDA’s 2018 number. Those high numbers will keep NC corn under pressure. EIA report will be out tomorrow morning with expectations for steady to slightly higher production and an increase in ethanol stocks.

 
Soybeans: Down 2
Soybeans rallied yesterday to all but make up the losses from the rumors of China/US trade talks break down. Chinese officials are still slated to come to Washington on the 30th and 31st so the trade turns back to SA weather. Early yields have been affected by the dryness in Brazil. Total South American are up 186 MMT, roughly 530 mbu larger than last year. Informa pegged US crop estimates down 187 mbu vs ly and global demand increasing 400 mbu from ly. US bean acres has increased 1.1 mil acres from the last estimate but still 3 mil acres less than last year.
 
Wheat: Mpls Up 3, KC Down 1
Both varieties of wheat followed the market up yesterday on the back of a Bloomberg story stating that China is in the market to buy 7MMT of wheat of US origin. Informa placed winter wheat acres down 1 million with spring wheat up 580,000. Some of those 580,000 thought to be switched from soybean acres. It’s plenty early and a lot can change between now and spring planting. Technically, both wheats are holding above their 50 day averages and are 5 and 7 cents from testing the 100 day averages.

 

The information contained above was taken from sources which Agtegra believe to be reliable, but is not guaranteed by Agtegra as to accuracy or completeness and is made available for information purposes only. There is a risk of loss when trading commodity futures and options.
 

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