Morning Market Insight

July 20, 2018
Jeremy VanderVorst
Grain Marketing Specialist
 
Corn  1 to 2 higher

President Trump has indicated that he is willing to put tariffs on every Chinese good imported to the US should the need arise. Corn continues to creep higher as many see a cut in world stocks with projected record world demand. Corn prices in the near future will hinge on US corn yields, is it a 174 projected by the USDA or is it closer to 178 that many analysts are talking. Argentina’s corn crop is estimated at 31 million tons which is down from the previous estimate of 32 million tons due to 4 month drought.
 
Soybeans  2 to 3  higher
Soybeans continue to trade higher despite additional trade war talks this week. Yesterday’s export report showed cancellations of soybean sales to China. On the flip side Argentina has booked soybean cargos to replace their drought reduced production.
 
Wheat 6 to 8 higher
Wheat continues to see a good bounce in prices as world production problems continue to offer support. MATIF wheat prices hit a one year high as they see production concerns mount. Forecasters suggest El Nino conditions for Australia in September which historically tends not to bode well for wheat production.
 
 

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