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Closing Comments

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Closing Comments

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Connect with farmer leaders like yourself, and attend business and leadership presentations from nationally known speakers such as Dr. David Kohl, Dr. Matt Roberts and Eric Snodgrass. We’ll be bringing Water Street EDGE to Champaign, Illinois on January 23-24. Find out more here or call 309.680.1200.

Grain markets were closed today to celebrate Martin Luther King, Jr. Day. 

 

The topic of discussion this week will focus in a large part on Argentine weather, now that the January Report is behind us.  Over the holiday weekend, Santa Fe and Corrientes in the north were hit with another round of heavier than expected storms, which will likely increase flooding across the area.  Up to 30% of the soybean acres this year are under “Red Alert” according to the Rosario Grain Exchange.  The southern third of the country missed the moisture and ironically is suffering from extreme dryness and heat, with more to come over the next 10-14 days.  High temps could reach 110-112 degrees, which historically is not common. 

 

What effect will China have on ethanol by the end of March?  Officials are floating the idea to raise ethanol import tariffs from 5% to 30%.  Unfortunately, this will put seven U.S. cargos in jeopardy of cancellation, as U.S. ethanol will no longer be competitive at that level.  CBOT corn futures will feel the pressure, as China is viewed as a potential area of demand growth.

 

Tomorrow will feature the markets back in action, with the USDA announcing export inspections at 10am CST and the NOPA Crush report coming out at 11am CST.

 

Commodity Weather Group

 

 

All opinions expressed in this commentary are solely those of Water Street Advisory. This data and these comments are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. There is significant risk of loss involved in commodity futures and options trading and may not be suitable for all investors.

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