News

Morning Commentary

March corn up ¼ at $3.785

March beans down 5 ½ at $9.0475

The DOW is down

USD is weaker

Crude oil down $.82 at $50.77

Good morning,

Corn traders have very little fresh news to chew on. There’s talk of second-crop corn starting to be planted in some key parts of Brazil. There’s also chatter about ongoing weather extremes in some areas of Argentina and Brazil but no major changes have happened to the forecast. Chinese trade headlines also remain of great importance, but again there’s nothing fresh or new to report. Adding to the lack of headlines or news vacuum is the ongoing government shutdown, with no position data coming from the CFTC and no major reports from the USDA. The short term trend is neutral.  Consecutive closes outside 376.5-381.75 should provide fresh trending targets.  Short, system types will find buy stops around 380.  Options are pointing to a 372-383.25 trading range this week.

Soybean bulls continue to monitor South American weather and trade negations with the Chinese. There’s been very little change in the weather forecast over the weekend for South America. Bulls also remain optimistic about trade, believing the Chinese are going to be much larger buyers of U.S. soybeans in the days ahead. Supposedly, China will be sending a few top officials to the U.S. during the next couple of weeks in an attempt to build on recent talks. The market is extremely hungry for specifics, which the lack of seems to be keeping a lid on most rallies. The short term trend is neutral.  Consecutive closes outside 898.5-918.5 is needed to provide fresh trending targets.  Short, system types will find buy stops around 917.75.  Options are pointing to a 891.25-917.25 trading range this week.

The USDA will purchase $5 million worth of U.S.-produced pork products from Brazilian-owned JBS as part of its plan to buy surplus food and mitigate the impact of the Sino-U.S. trade war. (Source: Reuters)

China has lowered its GDP to grow between 6% and 6.5% in 2019, down from last year’s goal of “around” 6.5%. Keep in mind, China needs at least 6.2% growth to meet officials’ 2020 goal of doubling GDP over a decade. (Source: Reuters)

 

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