Closing Comments; Tuesday, January 22nd, 2019
MaxYield Cooperative - SETZ - Tue Jan 22, 1:46PM CST

Export inspections for corn and soybeans came in right in line with trade estimates for the week ending January 17th. Corn inspected for export came in at 43.6 million bushels compared to trade estimate range of 35-43 million bushels. Soybeans inspected came in at 40.8 million bushels compared to the trade estimated range of 31-48 million bushels. Corn needs to average 51.2 million bushels per week and soybeans need 37 million bushels per week to hit the forecasted USDA export number.

China’s 2018 economy saw the slowest growth in 28 years. On Monday, the Chinese government announced the official GDP growth in 2018 was 6.6%. However, 6.6% growth on the year is still a very significant number as it is still nearly double of the global average. Many believe and attribute the slow pace of growth a consequence of the trade war with the US. Private banking officials have said that tax cuts will help stabilize their economy in 2019.

Grains sold off late in the session on an announcement that the U.S. rejected a meeting with the Chinese vice minister of commerce and vice minister of finance. The two Chinese officials had planned a trip to the U.S. later this week, but U.S. officials declined to meet. The current administration cited lack of progress on two key issues, forced technology transfer and structural reforms on China’s economy. The potential to reach an agreement by March 1st looks to be overly optimistic by many in the trade at this point.

March corn finished the session down 2 cents at $3.79, March soybeans closed 7 cents lower at $9.09 , and March wheat in Chicago was 4 cents higher at $5.21 .

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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