Weekly Market Summary June 8, 2018
Friday, June 8, 2018, 2:06 PM
Submitted by: Landus Cooperative
Markets continued to slip off this week. With no news developments, trade leaned on continued tensions between the U.S. and China and optimism about the crop conditions.
It has become common to expect tight daily trade when it comes to corn, with only 1 to 3 cents of movement in either direction. So when days like Monday occur and corn closes with 10 to 11 cents losses, we tend to focus on that number rather than the actual price levels. Soybeans also ended Monday with significant losses of 19 cents. We did not see much for “Turnaround Tuesday” with corn managing to end 3 cents in the green and beans finishing mixed either side of a penny. Wednesday and Thursday corn dropped off both days between 2 and 6 cents. Soybeans lost some on Wednesday, down 7 cents by the close, but had a more significant down day on Thursday with losses of 18 to 20 cents.
For the week, corn lost 13 ¾ cents from last Friday and soybeans lost between 48 and 52 cents. Soybean export commitments are at 99% of the full year projection, slightly behind the normal pace of 100%. We are still seeing strong demand for soybeans from China, but there is concern about how much of that is coming from Brazil. Some analysts expect a 2.5 million acre increase in Brazil’s soybean production next year, which may not pair well with the outcome of U.S. trade negotiations.
On the positive side, there is profit potential for producers at these price levels when paired with high yields. Keep communicating with your Field Sales Agronomists to ensure your yield is the best it can be.