Closing Comments; Friday, February 1st, 2019
MaxYield Cooperative - SETZ - Fri Feb 01, 1:45PM CST

Trade started the new month with solid gains across the board. Soybeans lead the rally on news that China is going to purchase another 5 MMT of US soybeans. According to sources, between 2 and 3 MMT of purchases have already been recorded. Optimism on a US and Chinese trade deal lead to buying in the corn and wheat pits as well. By the end of the session, much of the gains were erased as it is apparent that the increased purchases still leave more than adequate soybean reserves.

For the week, the spot March futures contract lost 2 cents but futures losses were offset by basis appreciation in most areas, as bitter cold temperatures halted grain movement across the majority of the interior market. Cash corn prices are said to be 22 cents higher than a year ago at this time. The new crop December contract lost a penny.

Soybean basis remained mostly steady this week, but the front month March futures contract lost 7 cents. The average cash soybeans are running $1.01 below last year. The new crop November contract lost 7 cents on the week. Wheat values for March gained 4 cents.

March corn finished today’s session 1 cents higher at $3.78 1/4, March soybeans closed 2 cents higher at $9.17 , and March Chicago wheat rallied 7 cents closing at $5.24 1/4.




 

Market Commentary provided by:

Karl Setzer Grain Commentary