Our Mission Statement:
Advancing our Legacy by creating value via modern facilities, dedicated employees, superior service, and sound marketing.
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|Apr 01, 2020|
|May 01, 2020|
|Jul 01, 2020|
|Sep 01, 2020|
M-F: 7AM - 4PM.
Coronavirus/COVID-19 Updates: We are still OPEN. We have implemented Limited Access to our Location Offices and only allowing employees, customers, or contractors inside. If you can conduct business over the phone, please do that. We do ask that if you are sick or have been around someone who was sick to not come in the offices or get near any outside employees.
Please Call (Ston: 325-3211, Mow: 768-4416, BM: 692-2141, Sharp: 623-5221) if you are sick or around someone that was sick and we will mail or bring documents out to your car.
DAILY MARKET COMMENTARY
Corn- Corn closed 1-2 cents firmer today and CK closed ¾ of cent higher this week. Fund short covering ahead of an uncertain weekend seemed the feature today as they bought 4,000 contracts at mid-day to cut into an estimated short position of 142,000 contracts. Energy trading and concern over progress between OPEC and Russia regarding cutting crude production has made for very volatile trade in crude futures today and there is currently a $6/barrel trading range. The S&D report was negative, but expected. Ending stocks are now 2.092 bln. bu., an increase of 200 mln. bu. Feed/Residual improved 150 mln. bu. to 5.675 bln. bu. and Exports are unchanged at 1.725 bln. bu., but FSI fell 375 mln. bu. to 5.05 bln. bu. due to the rapid slowdown in corn ethanol production. It is estimated gasoline usage is down 40%+ currently and ethanol storage space is extremely tight. Weekly export sales are a bright spot today, coming in at a marketing year high of 72.8 mln. bu. YTD commitments are 1.374 bln. bu. vs. 1.722 bln. bu. last year. Buyers of note were Japan, S. Korea, and Mexico. It is also estimated that China will increase corn imports to 4 MMT from 1 MMT. The improving corn export picture probably allowed USDA to keep export projections unchanged in the April S&D report. China remains an active buyer of U.S. Sorghum, accounting for 74% of known destination sales. Weekly sales came in at 14.7 mln. bu. and YTD commitments are 120 mln. bu. vs. 40 mln. bu. last year. On the world stage, Brazil/Argentine production is unchanged at 101 MMT and 50 MMT respectively, and close to trade expectations. Brazil’s CONAB estimates their corn production at 101.9 MMT. World corn usage is 18 MMT above production.
Beans- Soybeans closed 9 cents higher today with SK also gaining 9 cents for the week. Funds were buyers of 6,000 contracts mid-day against a beginning of day estimate of short 3,000 contracts. Short covering ahead of the weekend and some technical buying against a weaker dollar in play today. U.S. ending stocks increased 55 mln. bu. to 480 mln. bu. Crush increased 20 mln. bu. but Exports fell 50 mln. bu. and Residual fell 24 mln. bu. It has been an interesting week for soybean products as SBM futures fell $10/ton while SBO firms. Crush margins, net, are declining. Weekly export sales were 19.2 mln. bu., bringing YTD commitments to 1.374 bln. bu. vs. 1.611 bln. bu. last year. China and Egypt the buyers of note. S. American offerings are cheaper than U.S. currently, and this expected to be the case until late summer. On the world stage, Brazil production fell 1.5 MMT to 124.5 MMT (CONAB 122.1 MMT) and Argentine production fell 2 MMT to 52.0 MMT, both about as expected. China soybean imports increased 1 MMT to 89 MMT, an increase of 6.5 MMT over last year. World soybean usage is 10 MMT above production.