Morning Comments April 12, 2019
Friday, April 12, 2019, 3:04 PM
Submitted by: Landus Cooperative
Corn Steady to Up 1
Beans Steady to Up 1
U.S. corn sales last week of 548,000 mt (21.6 mil bu) were below market expectations of 600-950,000 mt, were nearly unchanged from the previous week’s 21.2 mil bu and were below last year’s same-week sales of 33.1 mil bu. There is still a lot of talk about the U.S./China trade deal which appears to be getting close to wrapped up, but until there are some concrete details regarding corn sales, the trade does not seem inclined to react. The weekly pork export sales to China that came out in yesterday’s export sales report was a real boost for the hog market, but was just a reminder to the corn trade that China’s need to buy corn is probably reduced by the reduction in their hog numbers due to the African Swine fever troubles.
U.S. soybean sales last week were just 270,000 mt (9.9 mil bu), sharply below market expectations of 800,000 mt to 1.15 mmt and compared to last year’s very strong same-week sales of 53.6 mil bu. This week’s sales were down sharply, obviously, from last week’s 72.4 mil bu, which included the latest round of Chinese buying, but the prior week’s sales were just 6.8 mil bu and just 13.9 mil bu the week before that reflecting the significant slowdown in activity when China is absent from the market. The soybean market continues to be supported by the optimism that the U.S./Chinese trade negotiation are going well and will be wrapped up in the next 3 to 5 weeks.
The June dollar index is trading 35 points lower this morning at around 96.46. This morning the May crude oil contract is trading around $0.90 higher.
PLEASE NOTE: Our grain policy has changed effective April 1st. The change is in regard to free time for a delivery. For any new delivery started on or after April 1st, you will have 15 days to make a decision about disposition. These 15 days will also apply to the amount of time allowed for averaging loads on that delivery. On day 16, any open contracts will be filled and the balance of the grain will be automatically placed on open storage unless other arrangements have been made by the 15th day. This change will help the cooperative be more efficient transferring grain throughout the year, and especially during harvest.