Markets are slightly lower this morning with corn down 1 and soybeans down 4 to start the week.
Look for grain trade to take direction from the stock market trade this week.
We will be monitoring the same news this week as traders wait for some news on the trade front. Vice Premier Lui is coming to Washington DC this week with a 30 member delegation to start trade talks. It is likely that Ag and Energy purchases will be made on follow thru from what was agreed upon at the G20.
An announcement of was supposed to happen on the second aid package for soybeans last week, but has not yet been confirmed. I have heard that offices were to be prepared to start filing paperwork as soon as today.
The USDA December Supply and Demand report will be released tomorrow at 11am. Yield will not be updated on this report, but we do expect to see changes in carryout of both corn and soybeans. Continued low export numbers in soybeans and lower ethanol margins in corn are expected to increase ending stocks in this report. I don’t expect much reaction to tomorrow’s report as historically this report generates little interest as traders await the final report in January.
Have a Safe Day!