Weekly Market Recap December 7, 2018
Friday, December 7, 2018, 9:12 PM
Submitted by: Landus Cooperative
Friday afternoon, March corn closed up 2 ¾ cents at $3.85 ½, gaining 7 ¾ cents from last week. Soybeans closed up 7 ¼ cents for January at $9.16, 22 cents above where they closed last Friday.
The big news this week was the positive outcome of the G-20 Summit meeting last weekend in Argentina, where the U.S. and China agreed to a 90-day cease fire on the trade dispute. While this was taken as overall positive news for U.S. commodities, it became apparent as the week continued that how much and when this would affect U.S. soybean demand was still very much unknown. As a result of the uncertainties, we saw a lot of back and forth this week from traders both in and out of the agricultural market.
The weekly EIA report showed an increase in ethanol production at 314 million gallons, reaching a 13-week high but still 12 million gallons behind where we were at this time last year. Overall, we are not seeing the year-over-year gains in production that we need to see in order to reach USDA’s usage estimates. At the same time, record-high stocks continue to be burdensome, coming in at 966 million gallons. This is the highest stock level we’ve seen in 3 weeks.
In the coming week, we will continue to keep an eye on the U.S./China truce, as well as weather and planting progress in South America. Promises of an early harvest there could further narrow the export window for U.S. soybeans.
USDA’s Supply and Demand report will be out at 11:00am on Tuesday, December 11th. Remember to contact your Grain Marketing Advisor or the Trade Floor about getting your offers in ahead of time.
If you listen to our latest Landus Cooperative Experience podcast, you’ll find out we now have an email address for listeners to contact us with questions/comments. Please email us at PodCast@landuscooperative.com if you have questions or topics you would like us to cover in future episodes.
Have a happy and safe weekend!