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 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.