Markets are softer today with some turn around Tuesday action. Yesterday’s crop progress report showed better than expected numbers for corn. The USDA said that corn is still 55% Good/Excellent which is unchanged from last week. However, last year at this time we were at 68% G/E. US Soybeans are said to be 54% Good/Excellent, down just one percent from last week. The corn crop is said to be 68% dented,18% mature and 4% harvest. The US soybean crop has 95% setting pods and 15% dropping leaves.
Weather remains bearish for the markets as the 16 day forecast isn’t showing much for cold weather threats. The Midwest is predicted to see average rainfall for the next day days with above average temperatures.
Energy markets have been making the news recently. Trump is said to back a new plan that would boost biofuel quotas by 10% in 2020. This plan is aimed to compensate for refinery waivers and would increase quotas by an amount equal to the 3-year average of past waived volumes. This should give some boost to the ethanol markets. Crude oil markets have seen huge volatility so far this week with Saudi Arabia announcing that half of its oil output, which equal about 5% of total world output, was halted on Saturday due to a drone attack in its Abqaiq processing facility. This caused a huge jump in oil prices yesterday, followed by lower prices today after announcements today that Saudi Arabia oil outputs should be back to normal in 2-3 weeks.
Trade talks continue to say that China will source 3-5 mmt of US Soybeans, however Lighthizer hasn’t confirmed that early October talks will produce a deal. US Soy products are cheaper than South American soy at the moment, which should push China into making some purchases.
As we get closer to the 2019 harvest, now is a good time to look forward to 2020. Get your target prices in so that you can take advantage of any spikes in the market! Give us a call if we can help with any of your marketing needs!