Morning Comments November 13, 2018
Tuesday, November 13, 2018, 3:11 PM
Submitted by: Landus Cooperative
Corn down 2.5 cents
Soybeans up 5 cents.
We’ve been stuck in a pretty range bound market place as far as corn is concerned, it hasn’t traded outside of the $3.60 to $3.80 per bushel range going back to October 1st, we haven’t even closed above $3.80 since early-August. The strength in the U.S. dollar is limiting export growth, it’s now at a 16-month high. There’s not a whole lot of news in the marketplace, corn remains sideways and doesn’t appear to be in too big of a hurry to get out of this cycle.
The story with soybeans has been the same for months. We need to see something happen on the trade front before we’re going to see any significant movement either way. Argentina is extremely wet and experiencing some delays in planting. There are some headlines indicating that one of China’s major animal feed makers has found African Swine Fever in their feed. The disease can survive in feed for several weeks, this could lead to significant losses if not gotten a handle on quick.
Cold weather prevails throughout the week and snow remains on the ground throughout much of our trade area. Hopefully the weather hangs in there so we can get harvest wrapped up and finish tillage!
Crude oil is sharply lower this morning after 11 days of consecutive losses. Traders are hoping that the drop in crude is just a factor of a massive global supply rather than decreasing demand often associated with recessions or economic slowdowns. The weakness in crude will eventually spill over into fuel prices which will help holiday travelers at the pump.
We’re seeing some follow-through strength in stocks today which are trading steady to slightly higher. Continued worries over global growth and trade tensions. The U.S. dollar is slightly lower this morning following yesterday’s trade when it hit a high of 97.58, it’s the highest level since mid-June of 2017.
Have a great day!