February 5, 2018
Producer Marketing Manager
Grains all lower to start the week as outside markets weigh on commodities. USDA Feb Supply/Demand report is out on Thursday.
CORN: As of 7:45 – Down 3
Funds covered a fair amount of their short position last week, more than anticipated and put a damper on prices overnight. Also over the weekend China rattled the sorghum cage by talking about cheap imports of US milo and possible trade actions. China is trying to auction off state owned corn reserves……is this a ploy to push away competition for that and try to clear more inventory?
SOYBEANS: As of 7:45 – Down 6
After a nice Jan rally, we are looking at the 4th consecutive day of lower prices in the soybean complex. Week-end weather in South America was as expected and continued hot/dry for Argentina this week gives way to a cold front and increased chances of rain starting on Thursday which is giving the trade some optimism. The graphs below show the past 7 days precip and temps…..not enough rain in Argentina and too much in parts of Brazil.
WHEAT: As of 7:45 – Mpls Down 1, KC Down 6
Mixed trade overnight as Mpls is steady and KC/Chi both lower. The KC looks poised to fill the gap left on Jan 30th at $4.54-4.57 (as shown below). It was a dry weekend in the southern plains, but several systems in the 10 day forecast may bring some precip…..