Weekly Market Recap January 4, 2019
Friday, January 4, 2019, 11:01 PM
Submitted by: Landus Cooperative
A short week with not a lot of news, so we’ll give you a quick overview of the highlights:
Government shutdown continues - a headline was released today that we would NOT be seeing a new WASDE report on January 11th, but no other details accompanied the announcement. At this point, we can hope the report is only postponed rather than cancelled, as many in the trade are looking for changes (specifically reductions) in corn yield. In addition to the missing S&D numbers, we have also been looking forward to an update on grain stocks as of December 1st.
Despite the lack of government reports, we’ve started 2019 off strong in the markets. March corn closed up 3 ¼ cents today, gaining 7 ½ cents from last Friday. March soybeans closed up 8 ¾ cents at $9.21 ½, up 26 cents for the week.
We are still seeing a decline in ethanol production as lower margins continue. On the optimistic side there are expectations that China will start importing corn. We keep hearing talk about small lots of beans being purchased by China as hope for the U.S./Chinese talks continue, but actual numbers are still far behind where we were at this time last year. There is still the narrowing export window to be concerned about, when China will look to South America for beans. Speaking of South America, we continue hearing talk of dry weather conditions potentially jeopardizing the “record production” we’ve been hearing about.
Continue taking advantage of the rallies, watching new crop 2019 prices, and making time to go over your marketing strategy with your Grain Marketing Advisor.
Join us on this week's episode of the Bull Bear Banter, as we discuss an up-trending soybean market and various bull/bear factors at play in the current market. https://landuscooperativeexperience.podbean.com/