Grain markets started the day session (Thursday) off strong.
We discuss what influenced grain markets Thursday, below.
AUDIO: Brian Grossman, Zaner Ag Hedge
Nearby corn, soybeans and wheat futures ended the day (Thursday) up 4 3/4 cents, 8 1/2 cents and 5 3/4 cents, respectively. Brian Grossman, market strategist with Zaner Ag Hedge, says the forward movement followed reports of several Memorandum of Understandings between the United States and China.
“The positive news we’re getting here is a Reuters article talking about a possible agreement we have a for draft outline to bring an end to this trade war. (This is) something we’ve been hearing a lot about, but nothing this close. There was not a set timeline, but (it’s) definitely a positive tone to what’s going on as we’re coming up on the March 1 deadline,” Grossman said.
Sales are discouraged at this time, even though market prices are back in a comfortable trading range. Grossman advises producers to “be patient and let the trade situation work itself out.” He believes plenty of factors will motivate the positive direction.
“Tomorrow is going to be an interesting day,” Grossman said. “The USDA has been catching up on the data we missed during the government shutdown. Tomorrow’s export sales are going to cover the week of January 10 through the 14, so we are going to be getting caught up and current once again. There may be a surprise in there, (as) it’s over a month’s worth of sales (data) we’ve been left in the dark on.”
Grossman says, “At the end of the day, the trade deal is going to be a great story.”
“As we saw from the USDA, they’re not looking for a huge change in acres. Simply, we’re still going to have a lot of soybeans,” Grossman said. “So trade could bring around a couple good marketing opportunities. I think producers should be ready to take advantage – if, and or when it happens.”
You can reach Brian Grossman at 312-277-0119.