Market News

Grains, soybeans react positively to planned trade talks

Soybeans closed higher on weather concerns in Brazil. It’s hot and dry there, and it’s too wet in Argentina where some soybean replanting is reported. DTN says there are also expectations of export sales the past two weeks, but USDA reports that would confirm sales have been stymied by the partial government shutdown. The USDA announced that reports due for release January 11 are postponed because of a lack of time to prepare them. As mentioned for corn, the seven-day forecast for southern Brazil calls for light rain amounts and more hot temperatures, stressful to row crops. U.S. trade negotiators will meet in Beijing with Chinese counterparts Monday and Tuesday to talk trade.

Corn closed higher, benefiting from Brazil’s forecasts calling for only light rain and hot temperatures. Meanwhile Argentina’s forecast calls for heavy rain and possible flooding. The Energy Department said ethanol production dropped, while ethanol inventory was higher.

Wheat was higher. DTN says export sales are suspected even though the shutdown didn’t allow official reporting of them. U.S. wheat prices are low enough to be internationally competitive. The wet forecast in Argentina also creates problems for their wheat crop in terms of quantity and quality. DTN cited a report that Algeria rejected a shipment of Argentinian wheat.