Current Markets as of 8:05 Wednesday, December 12, 2018
Month High Low Change Last
Mar 19 Corn $3.86 ½ $3.84 ¾ $ + ¾ $3.85 ½
Dec 19 Corn $4.04 ¾ $4.03 ¾ $ UNC $4.04
Jan 19 Beans $9.23 $9.15 ¼ $ + 5 ¾ $9.20 ¾
Nov 19 Beans $9.66 ¾ $9.61 ½ $ + 3 $9.64 ¾
Oil $52.50 Higher Gold $1,245 Higher Dow $24,730 Higher Wheat $5.38 Higher
The Des Moines ethanol low rack price is $1.4634. This is $0.1057 lower than the unleaded gas low price of $1.5691.
News reports indicate the Office of Management and Budget (OMB) is delaying the second tranche of tariff aid (MFP) payments on hopes of trade progress with China, while other sources say the USDA is expecting some kind of payment announcement by the end of the year
Corn Support is $3.78 and resistance is $3.90. Beans Support is $9.06 and resistance is $9.32. Funds bought 25 Million (5,000 Contracts) of corn and bought 30 Million (6,000) contracts of beans Tuesday. Over 85,000 contracts traded last night.
Markets are higher in the overnight trade on optimism China will soon be securing US Ag products. President Donald Trump said on Tuesday that China was buying a “tremendous amount” of U.S. soybeans and that trade talks with Beijing were already under way by telephone, with more meetings likely among U.S. and Chinese officials. Traders will be watching closely for signs of actually cash purchases
The Senate on Tuesday voted overwhelmingly to approve an $867 billion farm bill. The legislation will now head to the House, where it is also expected to pass
Weather: Rains will move in later this week, bringing precip chances to OK and TX before mostly affecting the Southeast and ECB into the weekend; some extended maps are running a bit wetter this morning, but the heaviest action remains south
Rains fell in eastern Argentina over the past 24 hours while temperatures increased to the upper 90’s and over 100 in northern ARG and southern BRZ; conditions look drier for the next five days save for central/NE ARG, with rains returning throughout for the 6-10 day
EARLY MARKET FEATURES
Corn – Corn strength coming from hopes of a China trade resolution included a 12,202 contract increase in open interest yesterday as new buyers entered the market
Beans – Firm start after President Trump said China is back in the market to buy U.S. soybeans. Trade is watching for a sales announcement.
Have a great Wednesday! Darren, Brady and David
Gold-Eagle Cooperative Providing Quality Services and Products Innovatively, Profitably, and Professionally.