Grain Exchange – Upcoming Trade Talks Cause Market Shuffle
Markets continue to trade up and down with news about trade talks. Soybeans were up yesterday with news China bought more beans and high-level talks could happen October 10th. China is also still reporting new cases of the Africa Swine Flu. So far this year, China has imported 40% more pork than last year.
Corn improved good/excellent rating by 2% to 57%. So far, the US has harvested 7% vs 11% on 5-year average. Markets are looking for a huge harvest week with the wet weather coming later this week. Markets are also waiting on September 30th USDA stock report. Currently USDA has carryout at 2.445 billion bushels.
Soybeans remained 54% good/excellent with 34% dropping leaves vs 59% on 5-year average. The market is watching weather in South America as they start planting. Mota Grosso is less than 1% planted and behind last year. Northern Brazil has seen little rain in the last 10 days. Markets are also watching to see if the US and Japan can finalize the trade deal prior to the self-imposed deadline.
Winter wheat is getting planted at a normal pace of 22% completed. Spring wheat is slowly coming off and is 87% completed. Egypt says they have enough wheat reserves to last four months. Ethiopia tendered 200 tmt. Last time Ethiopia tendered wheat was in May of this year. Russia has harvested about 79% of their wheat crop. Kazakhstan has cut production numbers to 18-18.5 mmt because of drought concerns.
With harvest coming, make sure to talk with us about options. It never hurts to put offers in for anytime frame; that rally may come when you least expect it. Start your marketing plans for 2020, as you start buying fall fertilizer and seed. We are available and more than willing to help you plan.
Have a wonderful day!