Grain Tidbits - April 5, 2018

On Monday, the weekly crop condition report sparked a buying spree in Hard Red Winter Wheat, which in turn, brought buying into the grain complex moving these markets higher as well.  I don’t ever remember a crop rating of 0% in the excellent category, and only 10% good for wheat in Kansas. Also, 47% of the wheat crop in Kansas was rated poor to very poor. Crop progress reports out every Monday afternoon will bear watching.

The hot topic of a trade war brewing and China’s retaliation on imposing tariffs on soybeans and corn made commodity prices collapse on overnight trading Tuesday evening on large trading volumes. Commodities on Thursday made a comeback with solid gains across the board.  Look for continued volatility.  The consensus in the grain trade is Brazil will run out of beans with China buying their production. Argentina, due to their drought has basically nothing to sell. With China buying out Brazil, the bright spot is that this will open the doors for business from other sources, previously not buyers of US beans. The United States has the cheapest price on soybeans of any producing nation at this time.

Ideas circulate that progress is being made in regard to NAFTA.  A summit is scheduled later in the month has provided some strength to the market. 

Domestically, demand has been good on both corn and soybeans. Look for that to continue.