1-17-2019

1-17-2019 – Grant Velde    

The USDA announced it will temporarily reopen approximately half of the FSA offices to assist with farm loans and tax documents. FSA offices open in our trade area are: Lyon County, Redwood County and Swift County. They will be open: Thursday 17th, Friday 18th and Tuesday 22nd. FSA has announced the current protocol to allow for grain which the CCC has filed a lien, to be able to move the grain. Please contact the FSA office for details.

Dryness from Mid-November to now, have impacted soybeans in Northern and Central Brazil. Continued dry and warm temperatures continue into Friday. 60% to 65% of Brazil has been drier than normal over the last 30 days. Dryness is no longer an issue in Southern Brazil and Paraguay. The forecast for the following week (19th-25th) is for wetter conditions for two days, then turning drier.    

The forecast in Argentina for the next 5 days is repeated thunderstorms with expected flooding in Northern parts of Argentina. 25% to 30% of Argentina has received at least twice its normal rainfall over the last 30 days. The forecast for the following week (19th-25th) is for two days of drier conditions, then turning wetter.

South Africa is currently in a drought pattern, with future weather/rain being crucial towards an all-out crop failure.    

On Thursday the 17th: March 19 corn at 374.50 (resistance @ 377.25 and support @ 371.00) March 19 beans at 897.25 (resistance @ 905.50 and support @ 891.25) March 19 Minn. wheat at 565.50 (resistance @ 572.00 and support @ 554.00). Locally: corn basis narrowed (.01) and bean basis narrowed (.03). FCE - Hanley Falls cash market: Jan. 19 corn @ 3.35 cash (-.39 basis) / Jan. 19 beans @ 7.93 cash (-1.02 basis). Current futures spread: corn (March 19 to July 19 @ .16) and beans (March 19 to July 19 @ .26 1/2). FCE – Hanley Falls Oct. 19 corn $3.48 and Oct. 19 beans $8.43.

The Chinese Ministry of Agriculture said pig inventories are down 5% due to the African Swine Fever, with 103 reported outbreaks in 24 provinces. Private estimates are up to a 30% reduction in the total number of hogs. The next US and China trade talks meeting is set for January 30th and 31st in the US. March 2nd is the firm deadline for a trade agreement with China. If an agreement is not reached by March 2nd, an additional $200 billion will be imposed on Chinese goods.

Martin Luther King Day– Monday, January 21st, 2019 – The trade is Closed                                                                                            Trading resumes – 7:00 pm on Monday, January 21st, 2019                                                           

FCE has started to enroll bushels towards the FCE Averager for the 2019 marketing year. Please call to enroll 507-768-3448.