Morning Market Insight

1/30/19
Alek Heier
Grain Marketing Specialist

 
Trivia: The Rams won an NFL championship representing which city(s)?

CORN: As of 7:45- Up 2 ¼
Ag markets that were on the defensive for most of the day yesterday do to concerns with the U.S./ China trade talks, but we have seen a small bounce in much of the overnight. Much of the trade, overall, in the corn market as been sideways on the lack of fresh news. Trade talks are set to begin today as much of the U.S. has been put in the deep freeze. Dec 2019 corn closed at $4.01 yesterday- Over the last 5 years there have been two spikes up near $4.50, but $4.01 is 20-64c above where CZ has gone off the board in each of the recent years (chart below).  On the technical side of the trade March19 continues to trade around the 50 and 100 day moving averages ($3.78 ½ , $3.77 ¾ ). USDA is still slated to release the Jan 11th report on Feb 8th for final production, yield, and Dec 1 stocks. USDA has also announced a sale of 138k tonnes of corn to South Korea yesterday.

 
SOYBEANS: As of 7:45- Up 2 ½  
After a lower trade throughout the day yesterday, soybeans have seen a jump on the overnight market from optimism coming out of the U.S./China trade talks that will resume today. Many estimate that the report on February 8th will show a reduction to yield/production. Brazil did see some scattered rains yesterday while they harvest, specifically their largest soybean growing state of Mato Grosso. Many of the dry areas in Brazil have continued to be dry- 95% of soy in central and northern Brazil was drier than normal over the last 30 days ending Sunday.

 
WHEAT: As of 7:45- MPLS Up 2, KC Up 4 ½
Wheat traded lower yesterday on lack of demand, but it has seen a jump in the overnight markets. There is still optimism that China will purchase U.S. wheat if the trade talks go well. The U.S. lost out on the Egypt tender from yesterday- they bought French and Romanian wheat with that tender (180k tonnes French, and 180k tonnes Romanian). Jordan was also in the market and purchased 60k tonnes option origin hard milling wheat for FH April.
Answer: St Louis, Cleveland, and LA
 

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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