Weekly Market Summary July 13, 2018
Friday, July 13, 2018, 4:07 PM
Submitted by: Landus Cooperative
Friday price settlements:
Corn down 4.5c
Soybeans down 15c
Another week finishing with red on the quote screen today as corn and soybeans are both sitting comfortably near contract lows. U.S./China trade tensions remain center stage with no resolutions in sight between the world’s two largest economies. In addition to futures levels, futures spreads have also weakened. This gives the warehousing system a dilemma. Spot domestic/internal U.S. basis levels firm in attempt to purchase cash grain while wide futures carries are signaling the system to hold on to ownership. It will be interesting to see the next 3 months unfold as domestic users (bean crushers, livestock feeders, and ethanol plants) attempt to cover needs at current price levels. As the saying goes: “high prices cure high prices”. The reciprocal is also true: “low prices cure low prices”. There is some market chatter of growing problems with the wheat crop in both Europe and Australia. If realized, this would certainly bring support to feed grains.
Weather is a mixed bag but improving with warm temperatures in the rearview mirror and most of Iowa getting some rain this afternoon. Next week looks to bring some relief in the temperature department with highs in the mid-80’s and lows in the 60’s. This will be key for the all-so-important pollination window (of which we find ourselves in the middle of). Next week should provide some first glances at August weather which will help firm up opinions about the soybean crop.
Have a good weekend!