Quiet markets to start the day/week off as corn is up 1 and soybeans are unchanged. There is a lot of news that could move the market this week and direction is TBD.
1. US and China trade talks resume this week as the Chinese delegates are in Washington to continue negotiations. Last week’s thoughts were that something would get done this week, but over the weekend the officials from China said they would not be bringing any full scale concessions to the table this week. This is disappointing as President Trump has maintained he wants 100% or no deal will get done. While it doesn’t look like a full scale trade deal will get done this week, I just hope things don’t go south again.
2. USDA Crop production and Supply and Demand numbers will be released on Thursday at 11am. After last month’s Stocks report traders are anxious to see what the USDA will show for yield and harvested acres estimates in this report.
3. Forecasts for freezing temps and snow in the Dakotas, Minnesota and parts of Northwest Iowa later this week and into the weekend could set harvest back for those areas. Temperatures locally will drop next weekend, but most areas don’t appear to have any killing frost in the forecast.
Producers locally are reporting that they will be heading to the fields as early as this afternoon to start bean and corn harvest. With the first half of the week looking dry it should allow most to get out and work out the bugs.
Look for some positioning ahead of Thursdays report as traders are currently short 140,000 corn contracts.
Be sure to get your firm offers in with us before Thursday’s crop report. I look for this one to spike when the report is released and then fade into the close.
Have a safe day!