Morning Comments February 27, 2019

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Opening calls:

Corn 1-2 cents higher

Soybeans 1-2 cents higher

 

Good morning,

 

Grains are trading a little higher this morning with corn 1-2 cents higher and soybeans 1-2 cents higher as well. Corn prices fell 3-4 cents lower yesterday as corn was following the wheat market lower. Additionally, Brazil’s first crop of corn is 31% harvested and their second corn crop is 67% planted which is 20% more than what they had planted at this time last year. However, the corn market is trading higher this morning due to the wheat market attempting to rally and the price of corn is at levels that should be supportive. Like the last two days, the trade still is optimistic about a substantial corn purchase from China sometime in March which would support the corn market tremendously. Soybeans followed the trade lower yesterday due to the skepticism of a China trade deal and the weakness in the grain market. Bearish news continues as the bean harvest in Brazil is 38% completed which is 14% higher than at this time last year, creating larger competition for the US, as well as the historically large US stocks. Look for soybeans to follow the corn market with steady movements as the trade still awaits any new fundamental news regarding a China and US trade deal.

 

Reminder that Friday, March 1st is the last day to sign up for our Averaging Contract. Call the Ames trade floor at (877) 778-2226 or your local Landus Cooperative location if you are interested.

 

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