Current Markets as of 8:10 Monday, July 8, 2019
Month High Low Change Last
Sep 19 Corn $4.45 ¼ $4.41 ½ $ + 3 ¾ $4.42 ½
Dec 19 Corn $4.48 $4.44 ½ $ + 3 ½ $4.45 ¾
Aug 19 Beans $8.84 $8.76 ¾ $ + 2 ¼ $8.78 ¼
Nov 19 Beans $9.02 ½ $8.95 $ + 2 ¼ $8.96 ¾
Oil $57.50 Mixed Gold $1,404 Higher Dow $26,807 Lower Wheat $5.21 Higher
The Des Moines ethanol low rack price is $1.8622. This is $0.1848 lower than the unleaded gas low price of $2.0470.
Dec Corn Support is $4.54 and resistance is $4.74. Nov Beans Support is $9.20 and resistance is $9.60. Funds bought 30 Million (6,000 Contracts) of corn and sold 30 Million (6,000) contracts of beans Friday. Just under 108,000 contracts traded last night.
Market was a little bit aggressive last night. Corn gapped higher and has yet to fill that, so watch for that today. Soybeans began the session on an aggressive note but that has faded. Spreads are probably more the feature in corn. The CU/CZ traded -2.5 to -3.25 overnight with volume of 7,804. The CZ/CH spread traded -5.75 to -6.75 with volume of 2,589. Overall the cash market remains very firm and that is spilling over to the futures markets. We continue to see basis levels ratchet firmer late last week, maybe due to the holiday, but nonetheless it continues its “strengthening” tone. Firm cash keeps the futures and spreads supportive
Trade talks resume this week between China and the US. Teleconferences are scheduled between USTR Lighthizer and US Sec Treasury Mnuchin, along with the Chinese counterpart Liu He. China is holding firm that all tariffs need to be retracted if talks are going to progress
Corn and soybean ratings are expected to be improved 1-2%. Last week 56% of the U.S. corn crop and 54% of the soy crop were rated good to excellent
The average trade estimate for Thursday’s WASDE report has 2018/19 corn ending stocks at 2.197 billion bu., soy stocks at 1.044 billion and wheat stocks at 1.075 billion bu
Weather: Weather may seem a bit friendly to the market. A drier tone and warmer tone settle Corn Belt this week after some precip chances in the central and WCB region on Tuesday
EARLY MARKET FEATURES
Corn – Drier forecast over the next two weeks pushing markets higher.
Beans – US and Chinese officials will continue trade talks this week by teleconference
Have a great Monday! Darren, Brady and David
Gold-Eagle Cooperative Providing Quality Services and Products Innovatively, Profitably, and Professionally.