Weekly Market Wrap-Up
Grain Market Commentary
Friday, November 22, 2019
by Paul Matthews, Account Representative, The Andersons
The week started with a continued mixed trade in the commodity sector as the market searches for even footing based on trade news, South American weather, and harvest progress numbers. Weather to start the week does look conducive to allowing corn harvest to proceed, and soybeans to finally wrap up.
Export inspections were stronger week-on-week for both corn and soybeans, but with no fresh news on a Chinese trade deal the market saw a downturn Monday at the close.
Crop Progress reported Monday night pegged corn at 76% complete up ten points from last week and soybeans were at 91% harvested, which was up six points from last week.
Tuesday began with markets attempting to recoup a portion of Monday’s losses, however from a technical standpoint both corn and soybeans dropped below chart support levels while wheat was able to hold steady for the time being.
Wednesday was more of the mixed trend for grains with low volatility as the trade is content to wait for any bullish headlines while also monitoring South American weather which appears ideal for the moment.
Thursday began with more flat-to-mixed trading with conflicting headlines regarding trade negotiations with China, this becoming more of an immediate concern amidst looming fresh U.S. tariffs being implemented December 15th. Export sales reported Thursday were up week-over-week for all three commodities.
Friday was a choppy trade to end the week, and January soybean futures slipped below the 9.00 level for the first time since September. Corn outlook continues to be challenged with exports keeping values stifled, but still managing to find technical support at current levels for now at around 3.65 December futures. Wheat futures finished the week strong, managing to regain Thursday’s losses and closing out the day with a net gain for the week.
December corn opened the week at $3.71 and closed at $3.6875 a 2-cent decrease for the week.
January soybeans opened the week at $9.19 and closed at $8.97, a 22-cent decrease.
December wheat opened the week at $5.0325 and closed at $5.1525, a 12-cent increase for the week.
Stay tuned to andersonsgrain.com for additional commodity market information.