Wednesday, September 18, 2019
Closing Markets: Corn +3. Beans -5. Wheat +5.
Corn rebounded from yesterday’s disappointing trade, closing higher across the board. CZ finished 3 ¼ cents better; CH settled 2 ½ cents in the green. Commodity funds bought modest quantities of corn today with purchases as of midday estimated at 2400 contracts. Volume was light as traders are finding little in the way of fresh news upon which to trade. Much of today’s rally was attributed to spillover strength from the wheat market which pushed above the 50-day moving average. This brought on a round of short covering. A continuation of the warmer than normal Midwest weather into early October looks likely with even the northern Midwest escaping frosty temperatures. However, above normal rainfall will also be the rule, potentially slowing early harvest activity. The weekly EIA energy report was somewhat bearish as last week’s ethanol production declined 2.0% from the previous week’s level and inventories of ethanol were up more than 700,000 barrels. The weekly export sales report due tomorrow morning, is expected to include corn sales near 43 million bu. The Fed today announced a reduction in short term interest rates of 0.25%. This was expected and will likely have little effect on commodity markets.
Soybeans traded independently of the higher grain markets today and finished modestly lower. SX and SF each settled down 5 cents. Commodity funds sold an estimated 2000 soybean contracts as of midday. The market was on the defensive all day on renewed concern about export demand. There were no announcements of sales to China today. U.S./Chinese trade negotiations have resumed in Washington DC. Traders expect that China will wait to see how the current round of talks progress before making any more purchases of U.S. soybeans. A second case of African Swine Flu was reported in south Korea today, adding to fears that the disease will rapidly spread across southeast Asia. Forecasts calling for improving rain prospects for key Brazilian soybean producing regions also weighed on today’s market. Soybean sales near 33 million bu. are expected in tomorrow’s export sales report.
C -131,000 (+5,000); S -78,000 (-4,000); W -41,000 (+4,000); SM -64,000 (-3,000); BO +7,000 (-)
Have a great evening!!!!
Emery Branch Manager/Originator || Topflight Grain Coop
593 Emery Rd.
Maroa, Il 61756
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