August 5, 2019: Mark's Market Talk

August 5, 2019

Rough probably doesn’t totally describe last week. Corn closed 15 cents lower while beans were off 31. Everybody is waiting on the August 12th report that most feel will correct the bad information put out in the June acre report. It seems there are poor spots throughout the entire nation this year. You don’t hear anyone talking about a record yield. We have some of the best looking crops right here in south central Iowa, but again no one is bragging at this point. They know what is now hidden from view. So you have to ask what is pushing this thing lower. Export demand has dried up on corn as South America still has amble supplies of cheaper corn. China isn’t importing ethanol like we expected them to so plants are slowing down and a couple have closed down. Basis levels remain strong as farmers continue to be stubborn sellers. President Trump’s announcement Thursday that he was putting more tariffs against China was a negative. The trade talks have been slow as both sides are sticking to their guns. It appears we will have to keep the pressure on the Chinese leadership if we are to succeed in winning this dispute. Meanwhile the losers are the American farmers and the Chinese citizens. A week from today we will have the most important USDA report for this year released. It’s guaranteed that we will have a lot of volatility following the report. Let’s hope the volatility is the good kind.
Posted: 8/5/2019 8:52:08 AM by Rob Matherly | with 0 comments

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