Morning Quick Notes

Overnight

  • Corn is off 1 cent in early trade Beans are off 2 and wheat is down 3 cents
  • The US Dollar Index is higher this morning
  • The energy markets were weaker in the overnight markets with nearby WTI down $0.37 to $52.35 per barrel.

 

Headlines

  • Friday’s Supply Demand report did not give bulls the needed news with the USDA lowering feed and ethanol usage of corn
  • The USDA did  reduce the  2018 corn and soybean yields from November’s report, but both are still the 2nd highest ever.
  • As trade talks resume China struck an upbeat note with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea.
  • 2018/19 may be the first season in which world soybean crush is  not increasing although world production is rising sizably.
  • Overnight, March corn broke the trend support higher that started back in September.

Chart of the Day

The USDA on Friday estimated 2019 winter wheat acreage at 31.290 million acres, down 4% from last year’s 32.535 mln ac, and the lowest number since 1909; that was down from the all-time high plantings levels of 65+ mln ac in 1981 and 1982. Number one producing state Kansas is set to drop a half-million planted winter wheat acres this sea-son to 7.2 mln ac—that’s the fewest since 1957 (basically tied with that year as the least since 1910) and down from an all-time state high plantings figure at 17.1 mln in 1937.