Markets are steady this morning with corn up 1 and soybeans up 5. Lack of any news and holiday season have the markets stagnant for the time being.
President Trump announced that a second round of payments would be coming for US farmers for soybeans. The President also told the Fed not to make another mistake and raise interest rates too much.
President Xi Jinping told an audience of party officials, military leaders that “no one is in a position to dictate to the Chinese people what should and should not be done” in a speech. “There is no textbook of golden rules to follow for reform and development in China, a country with over 5000 years of civilization and more than 1.3 billion people”. Who these comments were exactly referencing was not stated, but most believe it was the US.
I would advise producers to start looking to make sales for October/November of 2019 at the current levels. We are currently in the 70th percentile for the last five years with current prices in the $3.70-3.75 range. Any sale that can be made at or above this percentile is strongly recommended. If we increase corn acreage in 2019 by 4-5 million acres next year and drop yield back to 175 bpa we could very easily push next year’s carryout over 2.0 billion bushels.
Have a Safe Day!