Morning Comments September 27, 2018
Thursday, September 27, 2018, 8:09 AM
Submitted by: Landus Cooperative
Corn up a penny
Soybeans up 4 cents
Both corn and soybeans are higher this morning. Corn is a penny higher at the break and soybeans are 4 cents higher.
News in the grain market is hard to come by and trade volume could be reduced as traders keep an eye on the drama in Washington D.C. China is expanding their soybean production further as they’re reducing corn acreage in some areas in the next five years.
Weekly export sales came in generally better than expected. Wheat is pressured this morning as chances of rain improve through Russia. Argentina’s 2018-2019 corn harvest is expected to reach a record 43 MMT’s, up from 31.7 MMTs last year. They’re also expecting a record wheat harvest this season. Following the same trend is their soybean crop, up approximately 18 MMTs over last year. Their soy exports are estimated to be up to four times more than last year.
The U.S. and Japan have agreed to start talking about reaching a possible trade agreement. The U.S. is ready to move ahead on a new NAFTA-style agreement with or without Canada as the deadline is quickly approaching with less than a week to go. U.S. Trade Representative Robert Lightizer said negotiations with Canada remain at an impasse.
The weather outlook has a front moving into the Midwest tomorrow. It will bring light rains to the north and temperatures dropping below the normal into the weekend before another system brings soaking rains back to the upper Midwest early next week and yet another event scheduled for late next week. The next 11-16 day forecast has above normal temperature and normal to below normal precipitation.
U.S. dollar is higher following the 0.25% interest rate hike yesterday. NASS Quarterly Stocks and Small Grains report to be released tomorrow.
Have a great day!