Jan 23 Morning Ag Commentary

by Steve Freed

Grains are higher. SH is up 3 cents and near 9.12. CH is up 1 cent and near 3.80. WH is up 2 cents and near 5.23. Crude is higher. US stocks are higher. Copper is higher. White House denies Financial Times report that US and China trade talks have broken down. IBM earnings were better than expected.

Yesterday’s U.S. weekly export inspections had Wheat exports running 10% behind a year ago (11% last week) with the USDA currently forecasting an 11% increase on the year, Corn 61% ahead (61% a week ago) with the USDA up 1% for the season and soybeans 40% behind (40% behind last week) with the USDA having an 11% decline forecasted on the year.

U.S. exporters last week loaded six soybean vessels bound for China, the most in any week since the start of the tariff war between Washington and Beijing and an encouraging sign for U.S. farmers hard hit by the trade fight; the shipments are among the first to load and depart for China since state-owned companies booked an estimated 5 million tons of U.S. soy over the past month and a half.

Wire story is reporting China is said to consider buying up to 7 million tons of U.S. wheat.

Brazil’s weather forecast has the northeastern areas continuing to be notably dry through at least the middle portion of next week. Dryness is also seen for far southern Brazil through next Tuesday, which had been getting too much rainfall.

Argentina’s weather forecast has little to no changes with the expected shower and thunderstorm activity in central and southern production areas through Saturday. Follow-up rain events are also seen for central and southern parts of the country Monday through Wednesday of next week which will cause additional localized flooding.

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2019-01-28T18:17:09+00:00 January 23rd, 2019|