Morning Market Wire 1/7

Tuesday January 7, 2020 by: Eric Peterson

Corn closed a fraction lower this morning with the March contract trading a tight penny range overnight. China released a statement this morning it will not change its agricultural import quotas to accommodate any increased purchases from the U.S. Look for mostly rangebound trade this morning ahead of Friday’s USDA report.

Soybeans continue to trade weaker ahead for the January 10th report. News that China will not increase import quotas to accommodate the U.S is also pressuring the market. Dr Michael Cordonnier lowered his Brazilian soybean estimate 1.0mmt to 122.0 mmt. Excessive rains in November slowed planting while a lack of moisture in December has had a negative effect on growth potential. Look for lower trade ahead of Friday’s report.

Spring wheat closed two cents lower this morning with the March contract trading two cent range. Friday’s report is expected to show smallest wheat acres in over 100 years. However, much of that may already be factored in. Look for weaker trade today as tensions in the middle east are easing but remain and continue to pressure the market.

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