Marketing Partners Advisory: Weekly Conference Call Recap
The following are comments and discussion items from the weekly conference call of the recommendations group of Marketing Partners Advisory.
Discussion Items :
- No new recommendations
- USDA WASDE Report from last Friday was bearish on grain futures. The futures quickly went lower because of higher yields and larger ending stocks for U.S. soybeans.
- On this report, U.S. corn yield was only slightly bearish but the corn market slid lower in concert with soybeans.
- Another surprise was that the USDA did not change the spring wheat yield. The trade was looking for smaller production since recent tours showed less yield.
- World corn and wheat demand is out-pacing production for 2018-19. This is an area of concern that needs to be watched.
- China’s ending stocks for wheat is roughly 52% of the world carryout as compared to 32% of corn and 19% of soybeans. Wheat stocks may tighten for the rest of the world if current projections are true.
- World soybean demand is expected to increase but so is world supply. Implies bearish soybean prices.