Updated: April 20th, 2018
 


 

 
Closing Prices:
DEC. 2018 CORN $4.02
NOV. 2018 SOYBEANS $ 10.36
JULY 2018 KC WHEAT $ 5.02
Weekly Change: Corn finished down 28 cents for the week, Soybeans finished down 12, and Wheat finished the week 12 lower.. 
 
 

 
 

 

 

 

 

We need help!

 

Do you know of someone looking for a career working with ag producers and a passion for the markets? If so, we’d like to hear from them.  AgWest is currently looking for a few good folks that can help service the growing demands from our farming partners.  Currently we have the below openings:

For more details and to submit an application, please click on the link below.


 

Spring Is Coming!

 

“Better late than never” seems to be Mother Nature’s game plan in 2018. The prolonged winter has tried the patience of most and messed with pretty much everyone’s attitude, farmer or not. Fear not, spring is just around the corner now. Take a look at Thursday’s 8 to 14 day runs for both temperature and precipitation. A big chunk of the Corn Belt has slightly better chances than normal for some precipitation, but the good news is anticipation of normal to above normal temperatures across the entire growing region. If widespread planting gets underway by late April to early May, concerns of a late start to the crop will be minimized if not completely abandoned. 

Export Update

 

 

 

 

The good news is that in the face of tariff threats and trade-war fears, the year-to-date export pace for all three commodities is running fairly close to USDA projections. The bad news is, projections for all three commodities are lower than last year’s export totals. Last year was a terrific export year, but with ample supplies of everything lying around, increasing exports would be helpful. 

 

Sorghum Boats Get Turned Around

 

In contrast to the above segment promoting good exports, China this week announced heavy anti-dumping deposits on U.S. sorghum exports. If you grow sorghum or had some old crop sorghum still on the books, you probably remember the Chinese announcement back in February that initiated an investigation into U.S. sorghum dumping on Chinese soils that claimed our product was driving down local Chinese domestic prices. Unfortunately that inquiry has moved from an investigation, to now fees being applied to all U.S. inbound sorghum shipments into China. The announcement of these fees caused an immediate turnaround for a number of sorghum ships en route to China this week. The deposit fee of 176% the value of the shipment instantly makes this market non-competitive for U.S. sorghum.  In 2017, China imported more than 5.2 million tons of sorghum which is 10 times more than our second-largest sorghum worldwide customer.  This is week one of the newly imposed fees so how both sides play it going forward will be anyone’s guess. Point being, the talks and threats are now real, and at a time when U.S. grain producers need more export business, not less.  It has started with sorghum, let’s all hope it stops quickly and, furthermore, does not filter over into more U.S. grains.

 

The Rubber Is About To Hit The Road

 

The real test of a structured marketing plan happens during periods with limited time to focus on the markets. Limited market focus will certainly be the case once planters roll. This is one of those years when your days will stretch to 18 hours or more. If you’re trying to beat a weather system, some of you may go around the clock for a period of time. Other than catching an occasional market report, being mentally locked into marketing just isn’t going to happen. Decisions must be made ahead of this period and action steps put into motion…action steps that can make good things happen if markets allow. Here’s your pre-planting checklist. Cover these points with your broker and/or Cash Advisor before the crazy begins: 

 

 

Checking all the boxes above means you absolutely are operating with a structured plan. Checking the boxes means your plan is on autopilot and that your marketing discipline is alive and quite well.   

 

Markets At A Glance

 

As we have mentioned more than once in recent weeks, the funds have provided significant opportunities that were not necessarily expected this early in the year. Is this the beginning of much better markets than we’ve had in recent years or will we look back in a few months and realize this was the primary marketing period for 2018? No one knows how this will look in the rear view mirror but we do know that these opportunities have provided a solid foundation for our 2018 plans…and for that we are grateful. Here are our markets at a glance through Thursday’s close.   

 

 
Have a great week!