Markets are softer overnight with corn down 3 and soybeans down 10 as traders take a risk off approach after a US drone strike overnight killed an Iranian General. News that General Qassem Soleimani, the head of Iran’s elite Quds Force was killed in an air attack at the Baghdad international airport prompted expectations of Iranian retaliation against US and Israeli targets. There is no immediate indication how Iran would respond but they have seized oil tankers in the past and shot down US drones. General Soleimani was a top general in Iran that has been killing Americans and other innocent people for Decades.
Iran and China have been growing closer over the last year with tariffs between the US and Chana. Some analysts believe that this recent strike could have major impacts on the US and Chinese trade deals that have been in the works. (The “Phase 1” deal has still not been signed)
South American weather continues to look favorable for improved weather in the southern areas of Brazil and Argentina over the next 7 days. Showers are developing in the drier areas in this timeframe which will continue to keep crops in good shape.
The next USDA report will be one week from today on January 10th. Trade is looking for US 2019 corn production near 13,600 mil. Bu compared to the USDAs last report of 13,661. Soybeans are projected near 3535 mil. Bu vs. the USDA 3550. December 1st corn stocks are estimated near 11,600 compared to 11,937 lasts year. December 1st soybean stocks are estimated at 3.175 compared to last year’s 3.746.
Have a Safe Day!