Morning Comments; Monday, January 28th, 2019
MaxYield Cooperative - SETZ - Mon Jan 28, 6:02AM CST

Grains are trading mixed on the overnight session.

With the government shutdown ending, the USDA will play catch up on weekly export sales numbers, world supply and demand reports (WASDE), December ending stocks and the January supply and demand report. Some are speculating the January S&D report will replace the planned Feb 8th report.

Export sales numbers have built up some optimism in the trade that some bullish numbers will be revealed once they are released. The soybean trade is hoping there will be come positive data to support the export program. However, with soybean exports running over 400 million behind the estimates, catching up to the USDA projection is no small task. Harvest in Brazil is running ahead of normal and those early harvested beans offered at 2% below current U.S. offers. It appears the Chinese want to make a deal to resolve the trade war and may use buying U.S. soybeans to help make a deal. Analysts feel the U.S. may be asking for more than the Chinese can offer in the short term.

Despite the delay from the government shutdown, the EPA said Friday they still feel they can get reforms in place for E15 in time for summer gasoline usage. That was the EPA’s original goal and they still feel it can be completed on time. E15 was ban from summertime usage as it was previously thought to increase smog problems. Researched proved that was not the case leading to the push for year around E15 use, promoting higher ethanol blend rates and increased corn usage.

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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