Morning Commentary

March corn down ¾ at $3.8575

March beans down 1 ¼ at $9.4025

The DOW is down

USD is weaker

Crude oil up $.81 at $63.86

Good morning,

Corn  bulls are hoping the highly anticipated USDA’s January Crop Report scheduled for release this Friday will put the rally back on track. Bears worry that the turmoil in the Middle East and the recent U.S. killing of Iranian General Qasem Soleimani might spill over into all asset classes and create a more generalized “risk-off” mentality.  The trend is neutral.  Stable trade outside 379-395 is needed to provide fresh trending targets. 

Soybean  traders are contemplating very similar headlines to corn, i.e. rising tensions in the Middle East, Friday’s upcoming USDA report, next week signing of the “Phase 1” Chinese trade deal, overall Chinese demand, South American weather and politics. How the turmoil and rising tensions in the Middle East play out is anyone’s guess? If the headlines create enough uncertainty it could cause a ripple-like “risk-off” effect. the other fear is that it strengthens the U.S. dollar and creates additional headwinds for U.S. exporters. The trend is neutral.  Market action capped at the mid-point of Friday’s range should flag for follow through selling.  Stable trade outside 931-951 is needed to provide fresh trending targets

Bunge Ltd ended its 13-year ownership interest in an Iowa ethanol plant, the company announced last week, following industry struggles with thin margins and overproduction. Southwest Iowa Renewable Energy, or SIRE, repurchased Bunge’s stake in the facility on Dec. 31, according to a statement. Bunge had a 25% ownership interest in SIRE, which operates the ethanol plant near a Bunge oilseed processing facility in Council Bluffs, Iowa, according to an annual report Bunge filed last year with the U.S. Securities and Exchange Commission. The plant’s other owners are primarily agricultural producers in southwest Iowa, the filing said. SIRE is permitted to produce 140 million gallons per year and Bunge will continue to buy all of its ethanol under a revised commercial agreement, according to the statement. (Reuters)

ChemChina and Sinochem are consolidating their agricultural assets into a new holding company to be called Syngenta Group, ChemChina unit Syngenta said on Sunday. Chen Lichtenstein, current president and CEO of ADAMA, will be nominated CFO of the newly formed Syngenta Group. He will be based in Basel, Switzerland, the Swiss group that ChemChina acquired in 2017 for $43 billion said in a statement. (Source: Reuters)


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