Grain Comments 01/18/19 7:35:28 AM|
January 18, 2019 Comments per MIDCO
Good morning. Grain and soybeans have seen follow through buying overnight from yesterday’s rally. Treasury Secretary Mnuchin proposed lifting some tariffs on China as a good faith gesture in hopes that China will make concessions on such issues as intellectual property. However, Trade Representative Lighthizer is opposed to the idea. The proposal hasn’t been presented to President Trump yet. Extended weather forecasts maintain below normal rainfall for central and northern Brazil the next two weeks along with wetter than normal conditions across northern Argentina. A pattern change is forecast after the first week of February bringing increased rainfall to Brazil, but soybeans and the first corn crop won’t benefit much, if any, by then. Additional rainfall will benefit planting conditions for the safrinha corn crop. Cold temperatures will affect the Northern Plains over the weekend and next week, but snow cover should prevent wheat winter kill. Rumors circulated yesterday that China was buying U.S. corn and wheat; cash sources indicated that some wheat sales were likely made but gave no indication of any corn sales. Additional corn sales to Latin America have been made out of the Gulf in recent days. Currently, U.S. corn offers are the lowest in world export markets. We’re higher now, but a sell-off in front of the weekend wouldn’t be a surprise. Have a great Friday and weekend!