Weekly Market Recap August 30, 2019

Corn closeup

Friday afternoon, December corn futures finished a penny and a half lower at 3.69 3/4. But, that is up 2 cents for the week. November soybean futures gained 1/2 a cent today, up 12 1/2 for the week. 

It was kind of a slow news week. Here are a few things making headlines: 

  • The president announced that there would be a “giant” deal for the ethanol industry. No details were released.
  • The EPA announced that it is going to relax methane rules on the oil and gas industry.
  • Another ethanol plant closing down, at least for the time being. This one is just north of the border in Winnebago, MN. 
  • New Crop corn export sales were above market expectations this week.
    • The total commitments for ‘19/20 are about half of what they were a year ago, and the lowest in 14 years at this point. 
  • Argentina’s corn is offered at levels more than 40 cents less than the U.S., and there are indications that the peso could depreciate another 45% there. 
  • Black Sea feed wheat has dropped 5% in the past month, meaning more competition in the international market for feed grains. 
  • The main story for beans is the weather. While we do have a cooler forecast for the next week or so, there isn’t any talk of frost warnings yet.
    • There doesn’t seem to be much, if any weather premium built into the market.
  • Old Crop soybean sales were positive compared to expectations, showing about 3.5 million bushels of sales vs. an expectation of 4 to 8 million in net cancellations.
  • New Crop soybean sales show about 206 million bushels committed, compared to 486 million at this time last year, and an average of 556 over the last 10 years.
  • The next WASDE report is September 12th.

On this week’s Bull Bear Banter podcast, we’re joined by Steve Peterson, who recently visited China with the Farm Bureau. He has a lot of good information to share. You can find the podcast here: https://landuscooperativeexperience.podbean.com/

Have a great Labor Day weekend.