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Karl Setzer Grain Commentary

Closing Comments; Wednesday, July 18th, 2018

Moderate advances were made in corn and soybeans today as short covering took place in the market. This was mostly technical as we have started to see a shift in indicators. More concerns over crop conditions in parts of the Corn Belt also gave the market support. Advances were limited by a failure to end trade disputes and the overall impact it could have on commodity reserves.

Ethanol manufacturing for the week ending July 13th was positive for the industry. An average of 1.06 million barrels of ethanol were manufactured each day of the week, a 31,000 barrel increase from the previous week. Even with this increase in production, ethanol stocks dropped a large 625,000 barrels from the week before. Reserves now stand at 21.77 million barrels, which is an adequate amount.

Trade continues to keep a close eye on the Brazilian export market. Truckers in Brazil are not satisfied with the provisions that brought an end to their strike, and are still delaying shipments and deliveries in many cases. The question is at what point do buyers start to cancel their bookings with Brazil and switch them to other sources, possibly the United States. At the same time some buyers, including China, have enough soybeans in reserve they can wait for deliveries to take place.

So far, the commodity market has failed to react to flooding that has taken place in some regions of the Corn Belt. This is aggravating to farmers who are seeing fields underwater and know they are losing production. The reason for the lack of reaction is that flooding is more of a regional factor, not widespread like a drought tends to be. In many wet years we have seen total crop loss and record yields in fields right next to each other, which makes losses impossible to predict.

September corn futures finished today’s session 1 cent higher at $3.47 , August soybeans were 2 cents higher at $8.42 , and September wheat in Chicago was 3 cents lower at $4.94 .

For more information, you may contact Karl Setzer at 1-800-383-0003, or e-mail at ksetzer@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Karl Setzer. Data used in writing this commentary obtained from various sources believed to be accurate. This commentary is intended for informational purposes only and is not intended for developing specific commodity trading strategies. Any and all risk involved with commodity trading should be determined before establishing a futures position.


Market Commentary provided by:

Karl Setzer, CTA
Grain Solutions Team Leader
MaxYield Cooperative
West Bend, IA 50597

Phone: 515-887-7211
Email: ksetzer@maxyieldcooperative.com

Website:www.maxyieldcooperative.com