Morning Market Insight

January 2, 2019
Jeremy Vander Vorst
Grain Marketing Specialist


Happy New Year!
 
Corn Unchanged to 1 higher
Professional scout lowered Brazil corn production estimate 1mmt to 94mmt and has a lower to neutral bias going forward due to recent dryness. Brazil’s full season corn is in the pollination stage so weather is crucial going forward. Ethanol margins continue to struggle as we continue to see plants slow down or even shutdown. Last year at this time March corn futures were trading at $3.51 versus $3.75 today.
 
Soybeans Steady to higher
A US trade delegation prepares to travel to Beijing the week of Jan 7 and we recently sold a shipment of rice to China which is the first time this has ever happened. The 10 day forecast shows dry weather for much of Brazil and wet for Argentina. Temperatures in Brazil are seasonally warm and there are some dry pockets that must get rain soon. Last year at this time March soybean futures were trading at $9.62 versus $8.87 today. Below is a map of the 30 day South America % of normal precipitation.

 
Wheat Steady
Wheat trading lower as the new year will mean the US is not included in the TPP Agreement which will make wheat exports much more difficult in the new year. The main concern on Global wheat production currently is too much rain in Argentina has caused concerns with maturation, harvesting and grain quality of their Winter Wheat crop.  Last year at this time March spring wheat futures were trading at $6.15 versus $5.49 today.
 

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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