Morning Comments February 16, 2018
Friday, February 16, 2018, 8:02 AM
Submitted by: Landus Cooperative
Beans steady to +1
***The markets will be closed Monday for the President’s Day holiday. There will be normal trading hours today with trading resuming Monday evening***
Corn closed even this morning and soybeans continued to climb, up a penny overnight.
Soybeans made new highs for the move, strength still attributed to South American weather uncertainty. Argentina weather outlook does have some erratic shower activity through next Thursday, providing meaningful, but localized rain fall. Mostly favorable conditions will persist for much of Brazil over the next 7 days, dry condition in southern Rio Grande du Sol are gaining some attention.
The Buenos Aires Grain Exchange reporting 56% of the Argentina soybean crop is rated poor to very poor, versus 20% last month. 11% of the crop is rated good, there was no portion of the crop rated excellent. The Exchange remained steady on their production forecasts despite the conditions reported. They rated 58% of the corn crop as poor to very poor.
Not much new news for corn, we are knocking at the door of some pretty hard resistance levels to overcome, if we break through them, we may have 20 cents to the upside, but it will be a tough level to crack. Overhead resistance is growing for May corn at the $3.76 level, which is the high for the previous three days.
The Federal Reserve Bank of Kansas City reporting farmland values in the district, which includes Iowa and Illinois, rose 1% for good farmland.
The Dow futures are higher for the 6th day in a row after falling into correction territory last week. Both the Dow and the S & P 500 have seen gains of over 4% this week, on track for the biggest weekly percentage rice since November 2016. Meanwhile, the NASDAQ is up more than 5%, seeing its biggest weekly rally since October 2014.
With the three day weekend, Tuesday could prove to be a volatile day one way or the other.
MEMBER MEETINGS continue next week and through the first part of March
This is a “cannot miss” member meeting. If you want an update on what’s going on at YOUR cooperative, join us for a member meeting!
- Section 199
- 2018 CapEx Plans
- Agronomy Fleet Upgrades
- New/Online Customer Portal
- Computer System Changes and One Customer Statement
- Technology Investments
- Plans for Demolition and Site Clean-Up
- and Q&A
Our Averaging contracts are now available for Old Crop and New Crop, both corn and beans. With only a 4 cent fee, this is a very cost effective way to get started marketing grain.
Contact your local Grain Marketing Advisor for complete details, or call (877) 778-2226 to reach a GMA in Ames.