Weekly Market Summary November 30, 2018
Friday, November 30, 2018, 9:11 PM
Submitted by: Landus Cooperative
Good afternoon –
We saw some decently volatility market action this week with corn futures trading a 10c range and soybean futures trading a 35c range. March corn closed up 4c today at 377.75, up 7c on the week. January soybeans closed up 7c today, gaining 13c on the week. It felt like the entire week was leading up to the weekend meeting between President Trump and President Xi of China. There is a G20 summit this weekend in Argentina and President Trump has built up a lot of anticipation about a meeting he has with President Xi. The market has been adding volatility premium to price activity all week in hopes of some sort of trade resolution between the U.S. and China. Sunday night is sure to be an interesting trade open (7PM) as markets are on break from now until then.
Outside of trade discussions, there is some political tension flaring up once again in the Black Sea region. After a confrontation between Ukrainians and Russians last weekend, we are now hearing news of some Russian forces accumulating at the Ukrainian border. Ukrainian officials have halted the passage of all Russian men aged 16 to 60 from entering Ukraine. This part of the world has been on-edge for several years and it has big implications on how feed grains move in and about the Mediterranean.
Crude oil seems to have found a bottom at $50/barrel – visiting it on two separate occasions this week. Natural gas is still near recent highs and ethanol is still near recent lows. The energy picture hasn’t changed much in the last week. It will be interesting to see if the coming days & weeks of geopolitical events will alter the energy narrative.
Don't forget to tune into the Bull Bear Banter weekly on the Landus Cooperative Experience podcast: https://landuscooperativeexperience.podbean.com/
Have a great weekend!