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MARKET COMMENTARY

Morning Comments September 26, 2018

Wednesday, September 26, 2018, 8:09 AM
Submitted by: Landus Cooperative


Opening Calls:

Corn down a penny

Beans up a nickel

 

Good morning!

 

Corn and beans are mixed this morning with corn trading down a penny and soybeans closed up a nickel at the break.

 

Soybeans are leading the way following yesterday’s highest trade in 5 weeks. Brazil is turning to the U.S. as local supply is dwindling as China’s demand base has not shifted to the U.S. as it generally does this time of year. Agribrasil is estimating that Brazil will import around 1 MMT’s of soybeans in coming months from the U.S., its largest competitor. These imports will be necessary to supply Brazilian soy processors in the inter-crops period as most of the beans produced in Brazil in the last season have already been sold or are booked for exports. Fund short covering is also playing a role in pushing soybeans higher.

 

Dryness in Australia has been supportive for wheat, but corn was unable to push above yesterday’s high. Ethanol margins continue to get squeezed. Not much news in corn markets. Major potential market movers are yields, trade negotiations, and weather.

 

China’s government announced they will cut import tariffs on machinery, electrical equipment, and textile products as the country braces for the escalating trade war with the U.S.

 

Cool weather has arrived in the Midwest and Plains and is expected to persist through this weekend into early next week. Rain is expected again in the central U.S. with an additional 1-2 inches or more early next week.

 

The two day FOMC meeting concluded today; a 0.25% interest rate hike is expected.

 

Have a great day!

 

 

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