Tentative deal reached on Border Security that could avoid another Gov’t shutdown. Trade delegation traveling to china for meetings Thursday and Friday. Details providing some positive undertones to markets this morning.
At 0630 CH19 up $0.02 ½ at $3.75 ¼ with SH19 gaining $0.04 ½ at $9.09 ½. Chi and KC wheat bucking higher trend this morning each giving up $0.01 ¼.
Dow futures 199 higher at 25,216 and have retraced over 62% of the entire 5,514 October to December break. Crude oil running a buck and change higher this morning as well.
Tentative Gov’t funding deal reported to include $1.37 billion for a border wall? Sounds closer to capitulation. Call me a Debbie Downer but I suspect that dog ain’t gonna hunt with the Trump Administration?
US trade officials including Ambassador Lighthizer traveling to China for trade negotiations Thursday and Friday.
EPA could release a draft proposal to expand sales of higher ethanol blends. Could be by the end of the month.
Noted basis movement again yesterday with extremely limited farmer selling across the heart of the corn belt. Significant reduction in corn stocks from a year ago in IA and MN (especially along the border between the two) should make basis interesting moving forward.
Current corn export sales forecast at 2,450 mln bu and perhaps 50 mln bu too low?
Basis bids switch to the May contract in a little over two weeks with carry of 8 cents on corn 14 on soybean and near 6 for KC wheat.
Snow continues to pile up around the state of Iowa. Quad cities leading the way with near 75” of snow so far this winter.
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