Cash market relatively strong
NORMAL – The cash market seems to be relatively strong while the futures market appears to drag down future demand as we head into 2020.
Commercial grain elevators are paying quite a bit over the board to secure inventory, according to Curt Kimmel with Bates Commodities in Normal.
“I know locally we are five under here and that’s unheard of so this tells us there’s some demand out there that needs to be fulfilled,” Kimmel told The Central Illinois Farm Network.
Buyers on the other side need that coverage and Kimmel feels the cash market continues to be in fairly good hands.
Propane is one issue many didn’t think would flare-up on such a wide scale recently. Many producers had to wait several days to secure supply – especially during the recent cold snap here in Illinois.
“As time goes on and these temperatures stay warm, it should take the pressure off that a little bit,” said Kimmel.
Many areas are finishing harvest across Central Illinois. If you travel northeast, there are still quite a few crops left to come out of the field. This is the area which experienced extreme planting delays last spring.
Kimmel continues to monitor international news regarding U.S. and Chinese trade talks. It felt the trade was not very confident in phase one accomplishments early this week. Last week, we heard of state-owned Chinese companies securing modest tonnage of U.S. soybeans but there has been no confirmation.
“It’s a little concerning that we are not seeing this demand surface that was talked about,” Kimmel adds.
Growers and traders are also paying close attention to weather maps in the southern hemisphere especially as we get into the heart of their growing season once the calendar changes over to 2020.
Bates Commodities can be reached at 800-779-1515.