Closing Comments; Wednesday, February 6th, 2019
MaxYield Cooperative - SETZ - Wed Feb 06, 1:44PM CST

Weekly ethanol production for the week ending February 1st showed a reduction of 45,000 barrels per day, with the Midwest region reducing production. Ethanol stocks also showed a reduction of 33,000 barrels putting the total 23.9 million barrels, with the Gulf being the only region to show a multiple week reduction.

The total sales to China are reported at 3.8 MMT, since they made the announcement to they would buy 5 MMT of soybeans from the U.S. Along with more sales to China being reported, another 456,000 MMT were sold to an unknown destination. Even though the sales are positive for the markets, support is limited because the announcement that China would buy a large amount of beans was likely priced in the market already.

The markets are lacking new information as traders are waiting to the slew of reports to be released on Friday, February 8th. Some analysts are figuring some pre-report positioning will continue in the markets tomorrow as the market is expecting U.S. and world corn stocks to decrease from the December report.

March Corn closed down cent at $3.80. March Soybeans closed up 1 cents at $9.21 . March Chicago Wheat was down 1 cents at $5.26.

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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