Morning Commentary

May corn up 1 at $3.7225

May beans down 1 at $9.03

The DOW is up

USD is stronger

Crude oil down $.60 at $58.43

Good morning,

Corn traders are talking about extremely low volume in the market as many seem to be pausing. The two big questions in the air are U.S. and Chinese trade negations and U.S. weather, specifically how it will impact upcoming planting for important production inside Nebraska, Iowa, South Dakota and others areas across the U.S. negatively impacted by flooding and extreme moisture in the fields? ? As for Chinese trade talks, it sounds like top U.S. officials will again be traveling to China next week for another round of talks. Also considered a positive, are recent comments from USDA Secretary Sonny Perdue, who suggested that Chinese imports from the U.S. could double or triple over the next five years. With those types of numbers being mentioned, bulls seem almost certain it would have to include a heavy dose of U.S. corn, ethanol and DDGs.

Soybean bulls are happy to hear talk that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin plan to travel to China next week for another round of trade talks with Chinese Vice Premier Liu He. The headlines have been limited and the trade seemed to be getting more nervous, especially with all of the talk of a final trade meeting with President Trump and Xi perhaps being pushed back to June.

A jury found that a man developed cancer from exposure to Roundup weedkiller he used in his yard, in the second case to go to trial over the alleged harms of the popular Bayer product. The six-person jury in U.S. District Court in San Francisco now is set to begin hearing evidence to separately weigh whether Bayer’s Monsanto unit should be held liable, a decision that could bring substantial financial damages against the company. Keep in mind, this verdict comes just eight months after another jury issued a $289 million verdict over similar claims in a different case, which is currently being appealed. Supposedly, there are some 11,000 Roundup lawsuits waiting to go to trial in the US.(Source: Reuters; The Wall Street Journal)

The affordability of corn as a feed ingredient encouraged Japanese feed mills to use more corn in 2017/18, resulting in a 3.3% increase in total Japanese corn imports. The U.S. accounted for 77.1% of total Japanese corn imports during the marketing year — down 10.5% from 2016/17 — due to the price competitiveness of Brazilian corn. However, the U.S. has significantly increased its share of corn imports thus far in 2018/19. In the first four months of 2019, the U.S. accounted for 96% of Japan’s corn imports, compared to 42% during the same period of the previous marketing year. (Source: USDA)

Argentina continues to be the third largest producer of biotech crops, after the U.S. and Brazil, producing 12% of the world’s total biotech crops on an estimated 62 million acres. The government of Argentina set a new record of seven biotech approvals in 2018, after a low level in 2017. Among the events approved in 2018, there is one Safflower event – Argentina is the first country in the world to grant approval for a safflower event – one alfalfa, one potato and several soybean and corn events. China’s approval of GE events continues to be a top priority for Argentine foreign trade, since China is one of the most important export markets for Argentine biotech-derived agricultural products. (Source: USDA)


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