The lack of progress on the trade deal was the reason for volatile prices this week. Also a cause were ideas that the national yield won't be coming down near as much as many were hoping, thanks in large part to better-than-expected results in Iowa. All of that remains to be seen but it will be seen one week from today when the USDA releases its delayed production and S&D reports.
The trade deal with China is expected to provide some demand for corn and grain sorghum but specific details of the agreement are yet to be announced. Some in the trade think the small purchases over the last week is just getting the ball rolling and China will wait for more price stability before buying more. China was absent in all the markets, so it makes people wonder what the time frame of them something will take place. That too pushed the market lower. Most of the business we would expect to have has went to Brazil with their lower prices. That makes the China deal that much more important.
The government shut-down continues to keep the trade in the dark on many issues but pressure is mounting to end the shut-down soon.
The corn market looks like it has found resistance and now is turning to find support. Resistance is now at $4.37 while support from $4.27 down to $4.23 is now being tested. Resistance on beans is running from $11.22 up to $11.37 as been fully tested this week and now it looks like support is about to be tested. Support in the January is at $11.01with the strongest support at $10.70 down to $10.63.
Argentina had a strike that was going to take some time, but it didn’t happen and pushed the market lower.
Tariff discussion in the Supreme Court is going to have to rule what is an emergency or not. If they go by the constitution the tariffs will have to be taken off. Things are going to affect the markets are unknown. The trade is being cautious.
John R. AndersonVice President of Grain
Farmers Union Cooperative
563-380-2311
