Closing Comments; Thursday, February 7th, 2019
MaxYield Cooperative - SETZ - Thu Feb 07, 3:01PM CST

Pre-report positioning took place in today’s session. Corn, soybean and wheat values were under pressure most of the day. Soybean and wheat values fared the worst, rumors that President Trump and President Xi are “highly unlikely” to meet ahead of the March 1 tariff deadline added to today’s negative tone. Trade discussions between US and Chinese officials is still planned for next week.

Export sales data for the week of December 27th was mixed. Corn sales fell below expectations and the needed weekly amount to reach the USDA’s total at 19.8 million bushels. Soybean and wheat sales were both above the weekly needed amount and trades expectations at 38.6 and 21.8 million bushels respectively.

Less threatening weather is in the forecast for Brazil. Over the next 2 weeks, strong chances for cooler temperatures along with ample precipitation is expected. Four to 6 inches is expected to fall which should aid dryness for the rest of the month.

Weather in Argentina is also expected to improve in the near term, easing production concerns in that country. Excessive rain has plagued much of their growing areas. Updated 6-10 forecasts show precipitation returning in the North and Central areas, but amounts are expected to be light.

March corn closed today’s session 3 cents lower at $3.76 , March soybeans fell 8.1/2 cents, closing at $9.13 , and March Chicago wheat dropped 12 cents to $5.13 .


Market Commentary provided by:

Karl Setzer Grain Commentary