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Shutdown traps grain markets sideways

A grain marketer says commodities have been stuck in a sideways range as traders wait delayed USDA reports amid the government shutdown.

“The worry of a surprise always seems to go towards no one coming in to really heavily buy or heavily sell and I expect us to probably continue to trade sideways without any sort of major headline hitting, whether that’s a resolution to the China trade deal or a resolution to the government shutdown.” 

Angie Setzer with Michigan-based Citizens Grain tells Brownfield some markets are trading higher than last year even with a lack of USDA data.

“We’re seeing soybeans a little bit lower, wheat is quite a bit higher and so is corn.  Corn actually right now, even with the lower market off of the most recent high, is still about 30 cents higher than where we were a year ago.”  

Setzer says the warmer and drier weather in the Great Lakes is likely to cause problems for the wheat crop.

“The freezing and thawing that we’re seeing here in the state of Michigan and across the region as well as the lack of snow cover is concerning when the wheat crop is already struggling to get a good footing.         

Setzer says cash prices at the moment support the idea of maintaining soybean acres instead of a major shift to corn.  She’s encouraging farmers to lock in opportunity as basis levels are up nearly 20 cents from last year with the new soybean processing plant on track to open this fall providing some optimism in the region.

She expects production estimates from South American and trade resolutions, if any with China, to be major market movers to watch in the coming weeks.

AUDIO: Brownfield interview with Angie Setzer during the Michigan Agri-Business Association’s winter conference