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Karl Setzer Grain Commentary

Closing Comments; Friday, January 19, 2018

Corn and soybeans traded on the positive side much of today’s session, taking support from pre-weekend short covering. This was more beneficial to soybeans, as corn struggled with technical resistance. Corn and soybeans also benefitted from solid weekly export sales numbers. Advances were held in check by concerns over what could take place with the pending government shut-down and a build in interest for South American soybeans.

Exports for the week ending January 11th heavily favored corn and soybeans. Corn sales for the week totaled 74.3 million bu, over twice the top end of trade estimates and well above the volume needed on a weekly basis. Soybean sales were also above both estimates and weekly needs at 45.6 million bu. Wheat bookings were light at a mere 5.6 million bu.

The export line-up in Brazil is starting to build. According to Advance Trading a reported 68 million bu of vessel capacity is sitting at Brazilian ports today. This is a build of 20 million bu just since yesterday, and is 10 million bu more vessel space than a year ago. This is a strong indication that global soybean demand is going to be quick to shift to Brazil as harvest in that country is now underway.

We are starting to see a build in market volatility. This is not so much on futures, but in basis values. Movement has not been as great to start the year as many buyers had hoped for and now bids are being pushed as a result. The slow movement is a result of several factors including less than perfect weather to start the month and from farmers taking deferred payments to start the new year.

March corn closed up 1 cent at $3.52 . March soybeans finished the day up 2 cents at $9.75. March Chicago wheat closed down 2 cent at $4.23.

Market Commentary provided by:

Karl Setzer, CTA
Grain Solutions Team Leader
MaxYield Cooperative
West Bend, IA 50597

Phone: 515-887-7211