Morning Comments; Tuesday, February 5th, 2019
MaxYield Cooperative - SETZ - Tue Feb 05, 5:04AM CST

Grains are trading mixed on the overnight session.

Corn continues to grind sideways ahead of the combined Jan/Feb supply and demand report due out on Friday. Export loadings for corn are 294 million bushels ahead of this time a year ago and almost 120 million bushels ahead of the USDA estimates. Ethanol grind could cut into that extra usage in exports, as margins have been at breakeven or negative since November. Some in the trade expect ethanol usage will be lowered by 25-50 million bushels in Friday’s S&D report. There will be a lot of information in Friday’s report for the trade to digest.

Soybeans were relatively quiet compared to Friday as some confirmation of new Chinese sales were made. Fresh news from China on trade or export sales will be minimal this week as they celebrate the Chinese New Year. The wait and see game continues as traders wait to see if the two countries can work out a trade deal before March 1st. That is when tariff rates are expected to increase from 10% to 25% on more than $200 billion of Chinese goods.

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.




 

Market Commentary provided by:

MaxYield Cooperative