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Commercial Buyers Need Corn, Analyst Says

Investors eye this week’s snowstorm impact on Plains’ crops.

Weather in 2019 will be a very memorable year. In one way or another, the 2019 growing conditions are unmatched.

From a record-slow planting pace this spring to a record-slow harvest pace this fall, everyone in the ag industry has been impacted. The frustration continues as much of the northern Plains will be exposed to an early-winter blizzard. Many of those areas have barely started rolling combines. There is an overwhelming amount of soybeans and corn that could be covered with a foot or more of snow by Saturday.

Here’s this week’s Successful Marketing Newsletter.

Traders will need to see just how much snow falls before getting anxious about major crop losses.

The USDA report on Thursday is expected to be friendly after the bullish quarterly stocks report in late September. There should be some concern that we are setting up for a “buy the rumor, sell the fact” reaction. Unless the bulls get something overwhelming, it is likely we could see a pullback. Afterall, corn and soybean prices have rallied 45¢ and 80¢ respectively over the last 30 days. A rally of that nature should not be ignored especially when it happens this time of year.

Here’s this week’s Successful Marketing Newsletter.

China indicated it is interested in securing a partial trade agreement with the U.S. Negotiations are currently under way, yet many analysts believe the U.S. will not agree to a partial deal. China greatly needs to make a deal on a handful of U.S. ag products. Pork would likely be at the top of that list. China has booked U.S. soybeans recently as a sign of their willingness to reach a trade deal. However, many analysts suspect that is not the only reason.

China needs South America to produce a big crop. If there are any issues during the growing season, China knows they will be in a tight spot. Read the full article to see what else I am watching.

Here’s this week’s Successful Marketing Newsletter.

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