Grains Close Week on a High Note
January 18 2019 - 4:10PM
Dow Jones News
By Kirk Maltais
-- Soybean contracts for March delivery rose 1% to $9.16 3/4 a
bushel at the Chicago Board of Trade Friday.
-- March corn contracts were up 0.5% at $3.81 3/4 a bushel.
-- March wheat contracts closed unchanged at $5.17 3/4 a
bushel.
HIGHLIGHTS
Chinese Activity Spurs Fresh Optimism: Reports of large grain
trades overseas are being seen as an indicator of what kind of
purchasing activity is being seen in the U.S. while the government
is shut down and not reporting trade news. Soybeans saw the biggest
jump off of the reports, but corn also went up on rumors of Chinese
interest.
Traders Still Flying Blind: Without USDA or CFTC data to
reference, traders continue to rely on internal calculations in
order to predict movement on the grains markets. In some cases,
including predicting the activity of larger hedge funds, this
practice is become less reliable by the day. "The problem is, the
farther you get away from the (Dec. 18 CFTC report), it's hard to
have confidence," said Craig Turner of Daniels Trading. "I'd be
very impressed if they're accurate when this is all said and
done."
INSIGHT
U.S. Officials Hint at Lifting China Tariffs: Treasury Secretary
Steve Mnuchin is reportedly a proponent of lifting some or all of
the U.S. tariffs on China, in order to bring about a trade deal
sooner and end the spat between the two nations. This has been met
by opposition from other officials, including U.S. Trade
Representative Robert Lighthizer. The two sides have until March 1
to make a deal, or else tariffs on $200 billion of Chinese goods
will jump from 10% to 25%.
Shutdown Drags Into 28th Day: The government shutdown lumbered
into its 28th day, with President Trump and House Democrats no
closer to a deal regarding the U.S.-Mexico border. On Twitter
today, Trump sent a number of tweets continuing to criticize
Democrats for not agreeing to build a southern border wall.
AHEAD
-- Martin Luther King Day will be observed on Monday, with
grains not being traded on the CBOT. Normal hours will resume on
Tuesday.
-- USDA export inspections to be released on Tuesday--one of the
few datasets still being published during the shutdown.
(END) Dow Jones Newswires
January 18, 2019 15:55 ET (20:55 GMT)
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