Grain News – Good Forecast to Wrap Up Week
USDA will release weekly export inspections and harvest progress numbers today with the expectation US harvest will be 92%-95% with a good forecast to wrap it up this week. Although locally it appears we will have more work to do with low spots that will remain in the field until the next prolonged cold temps.
Soybeans are finding some support on news that the US treasury Mnunchin has resumed talks with China. Also talk that China Vice Premier could visit Washington before the G-20 meeting. The White House plans to expand the arsenal of tools being used to combat China trade abuses, including export controls and indictments. Domestically basis has been firming while in South America is off to planting a record amount of soybeans for next year and Brazilian exporters are forecast to sell a record volume of soybeans this year.
Corn basis has firmed as harvest has wrapped up around the country but as corn gets more expensive ethanol margin are getting more negative. Margins in the Western belt are closing in on negative 50c per bushel. It appears with record bean seeding in South America and the prediction of the US farmer to switch to heavy corn acres this spring it is not too early to look at layering in new crop 19 sales. Please contact us to discuss our very attractive HTA option.