Morning Comments December 11, 2018
Tuesday, December 11, 2018, 2:12 PM
Submitted by: Landus Cooperative
Corn up 1c
Soybeans up 2c
Good morning –
The global equity scene has been a bit dramatic in the last few weeks with the DOW losing 1,300 points since the start of the month. The U.S. came out of the G20 summit touting leaps of progress on the trade front with China, but we have yet to see exactly how all the details are going to be worked out. A few developments have come to center stage in the wake of the G20 summit. A leading Chinese tech Executive was arrested on allegations of dealing with & lying about business in Iran. If extradited to the U.S., the executive could face 30 years in prison. Some fear retaliation in-kind from Chinese officials against U.S. executives. Additionally, a Chinese court dealt a blow to Apple in favor of Qualcomm, limiting most iPhone model type sales in China. In Europe, there’s been some delays in the Brexit transition, adding anxiety to traders’ minds.
More locally, our corn & soybean space is trying to find pricing direction. Are we on the cusp of a resolution with China? What is South American weather going to be in January? How will this all affect acre decisions for the coming spring? We have a lot of questions to answer in the coming months. For the U.S. crop (which now supply is known for another year), we will focus on demand. The largest opportunities are in the feed and export spaces. Outside of that, the cash/basis markets are jostling for position going into the January, February, March time frame.
Have a great day!