Closing Comments; Wednesday, January 30th, 2019
MaxYield Cooperative - SETZ - Wed Jan 30, 1:54PM CST

Weekly ethanol production for the week ending January 25th saw a reduction from last week of roughly 19 thousand barrels. Total US ethanol stocks saw a build of 479 thousand barrels of ethanol for a total of 23.98 million barrels. In relation to the past ten years, US stocks are still at nearly record high inventory levels. A notable increase was found in the gulf coast where typically two thirds of ethanol is exported, specifically in the Galveston and New Orleans areas.

Brazils harvest has forced many analyst to revise their previous estimates for soybeans. Dry weather has affected significant areas but has not really commanded the attention of the market. Trade wants to see harvest move further along to get a better idea if the crop is truly getting smaller. If in fact we believe that a smaller crop is at play in Brazil, the US could potentially see a much less dramatic decrease in soybeans acres than previous thought. If this scenario holds true, one could argue that we could build on this year’s record large carryout.

March corn closed 4 cents higher at $3.81 . March soybeans closed 2 cents higher at $9.21. March Chicago wheat finished 4 cents higher at $5.17 .

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.




 

Market Commentary provided by:

MaxYield Cooperative