Grain Market Recap 1-31-19

  • A little excitement this afternoon after the grain market closed when news headlines announced China would buy 5mmt of beans a day from the US. This was later corrected to being just one total 5mmt purchase as 5mmt a day would consume all of the US production from this year in less than a month.
  • Bean prices are down a dime this week. There wasn’t much news from the trade meetings until late this afternoon and so far all reports have been positive, but still lots of uncertainty as far as what will get done. Bean market seems to have bearish fundamentals with bullish technicals as support. The reports that China will buy more agriculture products should push prices a little higher to end the week, but we’ve heard this story from China plenty of times in the past couple months.
  • Corn prices are 4c lower this week as prices have traded in less than a 10c range the last half of the month. Prices being brought down by increasing South American production, specifically the Safrinha corn in Brazil that will get planted a little early which will reduce possible weather concerns. Prices still not getting high enough to get producers to switch a ton of acres from beans to corn like the market was expecting after the trade war began. Corn market patiently waiting for next weeks WASDE report so would expect the tight trading range to continue till then.
  • Wheat prices down 11c on the week. Less than expected export demand and not much weather concerns has been the main factors for lower prices. A little weaker dollar this week has helped kept prices from dropping even lower. Wheat market is wanting to see what the 2019/20 US seedings figure will be in next weeks WASDE.