Grain markets pushed into February on the downtrend after reaching new highs the week before on continued weather concerns out of South America.
Brennan Turner is originally from Foam Lake, SK, where his family started farming the land in the 1920s. After completing his degree in economics from Yale University and then playing some pro hockey, Mr. Turner spent some time working in finance before starting FarmLead.com, a risk-free, transparent online and mobile grain marketplace (app available) that has moved almost 150,000 MT in the last 2.5 years. His weekly column is a summary of his free, daily market note, the FarmLead Breakfast Brief. Visit the FarmLead website (www.farmlead.com) for more information and to sign up for Brennan's newsletter.
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Grain markets are trending lower for the most part as we push through to the end of January with geopolitical risk and South American weather continuing to guide things.
Grain markets through the middle of January continue to be driven by South American weather challenges, namely flooding in parts of Argentina just as the soybean crop down there is starting to emerge.
Grain markets over the holidays traded mostly sideways, with things focused on what is happening in South America. Most recently, we got the United States Department of Agriculture’s (USDA) January World Agricultural Supply and Demand Estimates (WASDE) report, which tends to provide some fireworks and it did not disappoint this year.
Grain markets are ending 2016 with a divergent fact: cereals and coarse grains all dropped year-over-year, whereas oilseeds climbed higher.
Grains passed the midway of December doing a bit better on the cash front than where they were a month ago. Some weather issues in Argentina and recent production reports are supporting the oilseeds complex, while most other grains are trading sideways.
Grain markets got through the first week of December slightly higher as South American weather, new production reports, and export sales lead the bullish charge from harvest lows six weeks ago.