Weekly Market Recap August 2, 2019

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Friday afternoon, corn finished about 7 cents higher, with September futures ending the week at $3.99 ½ and that is down 15 for the week. December corn closed at 4.09 ½, down 15 for the week. Soybean futures gained 3 ¼ today and about 32 ½ for the week, with November closing at $8.68 ½ 

Just a reminder that for both old crop and new crop soybeans Landus Cooperative is following the November futures. 

This week the big news is trade talks with China as well as the U.S. corn sales for last week being less than great again. In trade talks this week with China it seems that the two countries continue to remain at odds over trade and tariff issues. President Trump announced on Thursday that after a long-running trade war still at a standstill he will be putting a “small additional tariff” of 10% on another $300 billion in Chinese products. This is in addition to the 250 billion dollars that is already tariffed at 25% that the president said in a tweet. The U.S.-China trade war has dragged on now for more than a year and a half with each side hitting the other with tariffs on their major exports.

The U.S. corn sales last week for old crop was at 5.6 million bushels and 5.1 million bushels for new crop. To put this in perspective-5 million bushels is roughly 12 shuttle trains or roughly two boats. In export news, it appears that 2018/19 exports are likely to fall modestly short of the USDA’s 2.100 bil. bu. export projection. Total commitments of 1.964 bil. bu. are down 16% from last year, while the USDA is projecting a 14% decline in exports at this time. New crop, 2019/20, total commitments are at just 153 mil. bu. vs. new crop sales at this time last year of 282 mil. bu, with only 5 weeks left in the old crop marketing year. 

Recently the Market Facilitation Program details were announced. These payments will be made on a per county dollar amount with the first payment to be made mid to late August. Sign-up for these payments started on Monday, July 29th, so be sure to contact your county FSA office or fill out the online form.