Morning Commentary June 4, 2018
Monday, June 4, 2018, 8:06 AM
Submitted by: Landus Cooperative
Corn -3 to 4
Beans -7 to 10
Quite a bit of negative news in the market over the weekend impacted the overnight trade. Mostly centered around continued talks of tariffs and retaliatory measures, but also thoughts of improving crop conditions in the U.S.
For corn, the main issues are a decline in crude oil, negative relations with foreign countries, and good to very good crop conditions. As far as crude oil goes, while we didn’t seem to get much higher corn prices when crude oil was rallying, we certainly are feeling the impact of the crude oil decline. This will most likely remain the story for corn prices relative to crude oil values. Disagreements with Mexico, China and other parts of the world will also negatively impact the price of corn. Traders will continue to watch the weekly crop progress reports, but for now are feeling very good about the scores so far.
For soybeans, the main story is and will continue to be the U.S. relations with China. Everything from steel and aluminum imports to pork and luxury goods exports will weigh on soybean values. With the Chinese propensity to cancel cargoes, traders will step cautiously before putting on more sales to them right now. Crop condition scores and planting progress seem to be pointing to a large U.S. crop this year, and that will also keep a lid on prices.
If you are looking to move any old crop, whether corn or beans, please let us know what your thoughts are. We believe we have some programs that can assist most people. We continue to encourage firm offers for Old Crop or New Crop.
Thank you for your continuing business.