Morning Comments; Tuesday, January 22nd, 2019
MaxYield Cooperative - SETZ - Tue Jan 22, 5:41AM CST

Grains are trading mixed on the overnight session.

Trading resumed last night after the observance of Martin Luther King Jr Day on Monday. On Friday buying interest continued for grains as more indications that China looks to work out the trade imbalance with the U.S. Grains initially look to be the benefactor as sources indicate China has offered a 6-year deal to buy 1 trillion dollars of U.S. commodities and other goods. Intellectual property rights is still a major issue for both parties. The U.S. Treasury Secretary has proposed lifting some of the U.S. tariffs in a good will effort to help negotiate the intellectual property issues.

The trade is still struggling for a lack of fresh news as Chinese trade news has be thin, no news out of the USDA on exports, Chinese corn supply revisions and final production numbers for 2018 as the government shut downs goes on. Weather models out 30 days are hinting at a pattern change in South America. Traders are cautious of weather forecasts after last year’s shrinking crop in Argentina as the season went on.

Market movers: Continued reaction to Chinese trade negotiations and weather forecasts.

For more information, you may contact Adam Suntken at (712)-454-1061, or e-mail at asuntken@maxyieldcooperative.com. The opinions and views expressed in this commentary are solely those of Adam Suntken. Data used in writing this commentary obtained from various sources believed to be accurate. This commentary is intended for informational purposes only and is not intended for developing specific commodity trading strategies. Any and all risk involved with commodity trading should be determined before establishing a futures position. Please visit our Risk Disclosure Page for more information on commodity trading.




 

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