Markets are up two in beans, 1 in corn. News is pretty limited on trade talks this morning. Meetings wrapped up, and at this point further talks will be via video conference for the remainder of the week. No date is set for a signing of a new agreement. Chief economist Kudlow stated that there are still issues to be worked out, but progress was made. More of the same, as this looks to drag out for eternity. “If we have a deal, then we’ll have a summit,” President Trump said.
Historic March floods are having impact on the ethanol industry. Ethanol shortages are pushing gas prices above 4 dollars in California, the highest price since 2014. Supply disruptions from rail, and currently close to 13 percent of plants are offline.
Tuesday the USDA will release updated supply and demand reports. The USDA will factor in the stocks report for March, but will not work in acres for 2019 production yet. There were 300 million bushels of corn that will need to be adjusted down in feed, exports and ethanol. Carryout is expected to be close to 2 billion bushels for corn. Changes of less the 50 million bushels are expected in soybeans. Chinese bean purchases will keep bean stocks from growing. Overall the S&D report will have a bearish tone, but it is also mostly priced into the market.
Have a Great Day!