Closing Comments; Thursday, January 24th, 2019
MaxYield Cooperative - SETZ - Thu Jan 24, 1:39PM CST

Ethanol production for the week ending January 18th showed a decrease of 20,000 barrels per day at 1.031 million barrels per day. Negative margins are still a concern as the industry continues to look for new demand. Ethanol stocks showed an increase of 150,000 barrels to bring it to 23.501 million barrels, the largest supply since mid-December.

The high demand for trucks and the higher freight rates continue to be a big factor in increasing costs of the soybean harvest in Brazil. Sixty percent of the products in Brazil are currently transported by truck. Transportation of commodities could be changing in the next few years, as the country plans to build new roads and 710 miles of new and expanded railways in the highly productive region of Mato Grosso to a river barge terminal. This would potentially reduce the cost of Brazilian commodities due to lower transportation costs.

All FSA offices reopened today even though the government shutdown continues. The offices will be open from January 24th through February 8th. If the government shutdown continues past February 8th, the FSA offices will be open Tuesdays, Wednesdays and Thursdays as needed. The new deadline for applying for the 2018 Market Facilitation Program is February 14th.

March Corn closed down 1 cents at $3.77. March Soybeans closed up a penny at $9.16. March Chicago Wheat was down 4 cents at $5.21 .

For more information, you may contact Kristi Guse at (712)-260-6486, or e-mail at kguse@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Kristi Guse. 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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