June 24, 2019: Mark's Market Talk

June 24, 2019
After several weeks of no commitments it appears President Trump and the leader of China will meet this week at the G20 summit in Japan. This news had very little effect on the markets as they have seen this movie before. Both sides have made their demands known and neither has been willing to bend so a positive outcome may not be in the cards at this time. US weather continues to be the lead story as planting woes in the eastern part of the Midwest just won’t go away. 2 reports this week will garner a lot of attention. The weekly progress report Monday will probably show the final amount of corn planted as we are near the end of June. Some beans will be planted yet but with the rain in the forecast it may not amount to much. Friday we will get the June planted acreage report and it will be closely watched by the trade. This past week corn was down 7 cents as we saw some profit taking occur. The funds have swung from way short the corn market to a decent long position so fast that a correction like this should be expected. However with all of the acreage and yield concerns we have most are bullish the corn market. The current demand is strong as basis levels are good and as you go east they get real exciting. On the down side there was a shipment of Brazilian corn unloaded in the Southeast United States last week. This area has a huge appetite for corn with all of the pork and chicken in the area. It just proves we are in a world market and we can’t take anything for granted. Beans ended last week about 6 cents higher. The funds are still short the market but they bought about 32,000 bean contracts last week. Bean traders are a nervous bunch who hate to be short. If the corn market takes back off it appears beans will be a follower even though their fundamentals are poor.
 
Posted: 6/24/2019 8:41:12 AM by Rob Matherly | with 0 comments