March corn up 1 ¼ at $3.725
Jan beans down 3 ¼ at $8.9025
The DOW is down
USD is stronger
Crude oil up $.14 at $58.90
Corn bulls are hoping the USDA will bring down their U.S. production estimate in the upcoming January report. Bears argue that any drop in production might be ultimately offset by a reduction in total U.S. demand. Just yesterday, weekly data showed U.S. ethanol production jumped to +315 million gallons edging out production last year at this time so corn demand is strong. The trend for March corn is negative. Consistent trade below 373 signals a test of the contract low (365.75). Closing over 384.75 is the minimum needed to produce corrective action.
Soybean traders are keeping a close eye on Argentina. Not only are the dry conditions in southern Argentina being closely monitored but so are political shifts and changes. Keep in mind, Argentina’s new president was sworn into office earlier this week and many sources are thinking it’s only a matter of time until new higher export taxes are put in play. The trend for January beans is neutral. Stable trade outside 889.5-902.5 will provide fresh trending targets.
Given the extreme weather in 2019, producers and users of silage should carefully watch for molds and mycotoxins. In a company news release, Alltech says extreme weather conditions and moisture levels can reduce yields and induce plant stress, and they can also lead to future issues for the crop, including mycotoxins and molds. Samples of the 2019 corn silage from across the U.S. submitted to the Alltech mycotoxin analytical services laboratory include high levels of mycotoxins. The samples have included an average of 7.13 mycotoxins, with a range of two to 14 mycotoxins per sample. Dr. Max Hawkins, nutritionist with the Alltech Mycotoxin Management team, says, “These levels of mycotoxins found in the 2019 crop are significantly higher than the average values.” He recommends livestock producers across the U.S. should test their own corn silage to identify the levels of individual mycotoxins and the subsequent risk present to livestock health and performance. (Source: Hoosier Ag)
China’s agriculture ministry said on Wednesday that African swine fever had been detected in three dead wild boars in northwestern Shaanxi province. The ministry first reported that the highly contagious disease, which has decimated the world’s largest pig herd, was found in wild boar in China in November 2018. This week, China announced it will sell 40,000 metric tons of frozen pork from its state reserves on Dec. 12, in the latest move to ensure sufficient supplies ahead of the country’s upcoming Lunar New Year holidays. The auction comes amid a huge shortage of meat in the country stemming from the AFS outbreak. (Source: Reuters)