This Week in Grain - December 21, 2018

10:22 AM 12/21/2018

The biggest news this week was the exporting of soybeans to China.  There has been several reports stating China will come back to the US for a third round of soybeans.  Export shipments were at 49.2 million bushels.  Export sales for the week were the second largest on record. While the news of business being done with China is welcomed, the fact remains we are still faced with a record carryout.  There is concern that the soybean corn price relationship favors planting soybeans rather than corn, compounding a large soybean carryout.

In corn, the weekly export report shows sales were very good as well.  There was a big 64 million bushel sale of corn to Mexico last week, and another 16.8 million bushel sale to them this week.  Sinking oil futures are depressing the ethanol market, causing negative margins.  

Wheat sales were disappointing after a recent upturn in business last week.  Russia looks to remain exporting wheat through June.

Merry Christmas

Jim Gallagher

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