Weekly Market Wrap-Up
Grain Market Commentary
Friday, December 20, 2019
by Paul Matthews, Account Representative, The Andersons
This week began with more of a follow through from last week’s announcement of the U.S./China phase one of a trade deal. Also, the trade is receiving news that Argentina has increased export taxes on corn, beans, and wheat which is adding fuel to the short-covering rally.
Export inspections had the wheat market running up with a big jump that put the U.S. close to par with 2018 market year. Corn export inspections were also up week-over-week, however soybeans were down a touch from the previous week.
Tuesday, started with a slow and unchanged trade but quickly escalated and closed strong and very near the day’s highs for both soybeans and wheat. At the close December 20 Corn futures were trading at six-week highs.
Wednesday started the day similarly to Wednesday and it looks as though managed money close out and consolidate their positions and how the U.S./China trade rhetoric plays out leading into the holiday.
Thursday started with soybeans lower as values are starting to encounter some technical resistance and appear somewhat overbought at this time. Most look for the trade to temper its reaction to a trade deal until they get something in writing and signed by those involved. Unless there is more news on trade, markets may shift into a holiday type of mode with a thinner volume and less volatility.
Export sales for wheat were up 73% which is a marketing year high, while corn showed even stronger numbers, up 96% from the previous week, and soybeans were reported up 36% from last week.
Friday kicked off with a slower start in what looks like more market gearing down ahead of a short week coming into the holiday. No trade headlines after late last week’s announcements has also added to the quiet, lackluster trade that is expected this time of year.
March corn opened the week at $3.835 and closed at $3.8775 a 4-cent increase for the week.
January soybeans opened the week at $9.125 and closed at $9.2825, a 15-cent increase.
March wheat opened the week at $5.3475 and closed at $5.4225, an 7-cent decrease for the week.
Stay tuned to andersonsgrain.com for additional commodity market information.