Headlines:
- President Trump is expected to begin rolling out executive actions on immigration today. The actions could restrict the flow of refugees into the US and place a temporary ban on people coming from countries that sponsor terrorists. Funding for “sanctuary” cities would also be curbed
- East Coast crude stocks rise by most since 1998: EIA
U.S. East Coast crude stocks rose by 3.4 million barrels last week to 17.7 million barrels, the biggest weekly rise since 1998, data from the U.S. Energy Information Administration showed on Wednesday.
- USDA Disavows Gag-Order Emailed to Scientific Research Unit
The U.S. Department of Agriculture said on Tuesday that an internal email sent to staff at its Agricultural Research Service unit this week calling for a suspension of “public-facing documents,” including news releases and photos, was flawed and that new guidance would be issued to replace it. The ARS focuses on scientific research into the main issues facing agriculture, including long-term climate change. President Donald Trump has cast doubt on whether man-made climate change is real and has railed against ex-President Barack Obama’s efforts to combat it. “This internal email was released without Departmental direction, and prior to Departmental guidance being issued,” USDA said in a statement. “ARS will be providing updated direction to its staff.” It said peer-reviewed scientific papers from the unit should not be blocked. “ARS values and is committed to maintaining the free flow of information between our scientists and the American public.”.
Summary:
Generally speaking, grain prices have been trending higher through the month of January and especially since the January 12th USDA reports. Despite record yields for both Corn and Soybean last year the markets have found their way in trending up. Historically the January USDA report set the tone for what to expect through the first 3-6 months of the year so we are looking at the potential of repurchasing on dips. Trading was a bit muted today with Corn up 2.75, Soybean down 2.25 and Wheat down 1.00.
In the global space, South Africa approved the import 1.3 million metric tons of GMO Corn from the US. Weather in South America continues to be closely monitored by traders. The chart pattern for Beans on the daily chart is setting up clean flag pattern and if support is able to hold higher price could be ahead. Wheat is at resistance exactly at a measurement that is a 1.618 Fibonacci factor from the impulse move that start the move up. If it is able to hold above 411.25 we also like Wheat to head higher.
