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 :

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  • No new cash recommendations.
  • In the USDA’s January 11th report, U.S. and world numbers were disappointing to market bulls.
  • Rains in the East and Midwest could cause flooding.
  • U.S. grain markets need positive China trade news.
  • Another U.S. government partial shutdown is possible.
  • Pacific Northwest corn basis is firm as weather and demand are supportive.
  • Gulf basis is firm for corn, but barge shipping costs are increasing due to high water, which is causing cheaper basis in the interior.
  • The market is looking for a 5 million metric ton (mmt) increase in 2019 world corn crop, which is a 27 mmt drop in stocks.
  • The market is looking for the same world soybean crop in 2019 as 2018, which is 0.5 mmt increase in stocks.
  • The market is looking for a 40 mmt increase in 2019 world wheat crop over 2018, which is 0.8 mmt increase in stocks.
  • U.S. Midwest cooperatives are talking about custom farming for older farmers who want to retire.
  • U.S. Midwest spring weather could be wet and cool. The summer is forecast to be near normal.