Weekly Market Wrap-Up
Grain Market Commentary
Friday, September 13, 2019
by Paul Matthews, Account Representative, The Andersons
This week kicked off quiet with both corn and beans trading and finishing Monday close to unchanged. The forecast for September continues to look warm with above average temperatures across the U.S. growing area. This coupled with weakening cash markets as demand is dismal, the trade will be looking for any deviation from the norm on Thursday’s USDA crop report to have any upward trend.
Tuesday was firmer based on an unexpected drop in crop ratings for corn – most prevalent in Illinois and Nebraska down 8% and 4% respectively. The trade was expecting unchanged numbers this time around. Soybeans appeared to be holding at their support levels for now on the charts.
Wednesday gave back some of Tuesday’s short-covering rally without a solid fundamental reason for what was seen. Some speculate it was due to more chatter with China regarding trade news in addition to crop ratings as reported lower than expected.
Thursday started firmer as markets geared up ahead of the USDA report, in addition to more trade news between the U.S. and China. The President has been understood to plan on delaying implementation of new tariffs for two full weeks, while China said it will return the U.S. for agricultural goods.
The USDA report Thursday showed corn production at 13.8 billion bushels, which is down 1% from the previous forecast. Yield for corn was reported at 168.2 bpa, which was down 1.3 bpa from the August report. Soybean production is forecasted at 3.63 billion bushels, which is down 1% from the previous forecast. Yield for soybeans was reported at 47.9 bpa, which was 0.6 bpa from the August report.
Friday finished up with a follow-through from Thursday’s gains. News that China bought U.S. soybeans also fueled a major surge in values, closing at their highest levels since early July despite the USDA report not being particularly favorable regarding yields for both corn and beans.
December corn opened the week at $3.5475 and closed at $3.6875 a 14-cent increase.
- Corn rating this week was reported at 55% this week, down 3 points from last week.
November soybeans opened the week at $8.5775 and closed at $8.9875. A 41-cent increase.
- Soybean rating this week was unchanged reported at 55%.
December wheat opened the week at $4.61 and closed at $4.835. A 22-cent increase.
Stay tuned to andersonsgrain.com for the latest commodity market information.