Weekly Market Recap 3/23/18
Friday, March 23, 2018, 3:03 PM
Submitted by: Landus Cooperative
It’s been a somewhat pins and needles feeling this week as trade anticipated news on tariff talks between the U.S. and China. Corn contracts closed up 1 ¼ cents today, but lost 6 cents from last Friday’s close. Nearby soybean contracts closed 1 ¼ cents in the red to end the week. This was down 21 cents from last week on the board, though basis improvements were able to moderate the loss in the cash market.
Both corn and soybean markets closed deep in the red on Monday, and fought an uphill battle the remainder of the week. Friday’s board saw significant swings, as China suggested an additional 15% duty on ethanol imports from the U.S., raising the duty from 30% to 45%, if a trade compensation agreement is not reached in time. This news caused corn and soybean traders to sell off for a time this morning, with corn being down 9 cents and soybeans down over 20 cents at one point. Markets were able to rebound before the end of the trade day, with both commodities closing just slightly either side of unchanged.
Next week, USDA will release their prospective plantings report on Thursday, March 29th at 11:00 AM. This will be our first insight into whether or not producers intend to shift their acreage this year.
President Trump signed the spending bill earlier today, which included multiple fixes to the tax bill passed late last year. Among these adjustments was new language regarding Section 199A. While we do not know exactly how the final legislated Section 199A language reads, it has been reported that a fix was included in the spending bill as widely anticipated by industry groups.
Have a happy and safe weekend! Please be sure to check the forecast if you are traveling – winter is not completely ready to give way to spring.