Closing Comments; Wednesday, January 23rd, 2019
MaxYield Cooperative - SETZ - Wed Jan 23, 2:30PM CST

Informa released their acreage update today. They are predicting the US will see 2.36 million acre increase in corn acres totaling 91.5 million acres for the upcoming 2019-crop year. Informa expects a 2.94 million-acreage decrease from 2018 coming in at 86.2 million acres. Informa’s yield estimate is relatively unchanged with corn at 178.2 bpa, 6 tenths of a bushel below last year. Soybeans on Informa’s balance sheet show a reduction of 4 tenths of a bushel from last year, with a yield estimate of 51.2 bpa.

The rush to secure physical ownership of grain before the poor forecast has proven difficult for many end-use markets. Buyers have been struggling recently while hedgers have enjoyed a desperate cash market. Basis has been tasked to do most of the legwork as deferred money paid out in early January has satisfied the cash flows of many farmers. The next wave of cash bushels switching hands will be in March, as cash rents and income tax season comes around.

March Corn closed cent lower at $3.78 . March Soybeans closed 5 cents higher at $9.15. March Chicago Wheat finished 5 cents higher at $5.27.

For more information, you may contact Brock Beadle at 515-341-7040, or e-mail at bbeadle@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Brock Beadle. 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.




 

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