Today, March corn closed up 1 ¾ cents at $3.78 ¼, down 2 cents from last Friday’s close. March soybeans closed up 2 ½ cents at $9.17 ¾, down 7 ½ cents for the week. Early on in the trade, March corn was up 4 ¼ cents and beans were up 16 cents, but we saw some sell off toward the end of the day due to profit taking.
With the Federal Government back to work, we will see the Quarterly Stocks report and 2018 Crop Production next Friday, February 8th. We would encourage producers to have offers in ahead of the reports being released, as market volatility is a high possibility.
Late Thursday afternoon, news stories were released indicating strong promise for trade talks between the U.S. and China. However, there seems to be a lot of uncertainty about the amount and timeframe for the new soybean export sales. The chatter did provide support for the soybean market, with corn along for the ride, but we couldn’t keep most of the strength through the end of the trading session and only finished a couple of cents higher.
In other market news, ethanol continues to struggle with low production and high stocks. We are also seeing better weather in South America, which could present some downward pressure for the U.S. markets in the coming months. On a positive note, while the export reports from December 20th have been delayed due to the shutdown, they showed strong numbers for corn of 1.23 million bushels compared to the 5 year average of 1.06 million. For beans, we still have a large carryout looking over our heads from the last WASDE report, so it will be interesting to see how the last number of 955 million bushels compares with the number we will see next week.
Continue to take advantage of these rallies.
Join us this week on the Landus Cooperative Experience podcast as we discuss the Federal Government getting back to work and potential progress with China. https://landuscooperativeexperience.podbean.com/
Enjoy the warmer weather this weekend!