Corn and soybeans are quite this morning as both trade within 1 cent of unchanged. Wheat is 2 higher on concerns of less rain than forecasted earlier in the week.
Corn and soybean’s continue to trade sideways while we monitor US/Chinese tensions over tariffs. China has threatened to add a 25% tariff for us soybeans, but news that Argentina will import US soybeans has kept the markets from falling. With tariffs already in place on sorghum there is a fear that this will replace some US corn demand and may replace corn exports to certain countries. Rumors yesterday that some large US exporters of corn are offering sorghum at discounted levels in an effort to move the commodity. There have also been reports of ADM asking Mexico if they would be willing to switch current corn sales with sorghum at discounted prices.
Weekly export sales released this morning showed corn at 43 million bu. for the week ending 4/12/18 which is 17 million behind the ten week average. Corn has caught up with projections for the year over the last 4 weeks. Going forward we will look to maintain or exceed the estimates to help reduce the burdensome carryout.
Producers should be actively placing firm offers with their buyers for new crop sales that are hovering in the $4 range. Take advantage of the down time you have before you head to the fields to talk with your buyers to get targets set for the crop you will be planting. For most producers it is difficult to find time to make sales or put firm offers in once you are busy planting. This is also the time that we could see spikes in the market due to weather issues around the country.
Have a safe day!