October 15, 2015
Producer Marketing Manager
CORN: As of 7:45 – Down 2
We traded lower yesterday as a lack of fresh bullish news dampened buying enthusiasm. Corn planting pace in S America is off to a torrid pace, 48% planted in Brazil which is 10 points ahead of last year’s pace. Speaking of S American corn………their old crop stocks are still priced at a $0.50 discount to US corn……tough to get too enthusiastic about US exports at this point. Will domestic usage increase?
SOYBEANS: As of 7:45 – Steady
USDA announced the sale of another 235,000 tons to China yesterday morning. To put these export sales into perspective, this is routine as they must buy 216,000 tons, every day, 365 days each year to reach their 79 million tons. Harvest pace is progressing quickly and the forecast for the next 5 days looks favorable for continued progress. The November contract is teetering at the upper end of the range as displayed below…….good opportunity to protect some bean price risk???
WHEAT: As of 7:45 – Steady
Wheat gave back most of Tuesday’s gains yesterday along with the other commodities. Continued talk of Australian dryness and if the USDA is too high on their production estimate of 27 MMT. Also looking at dry conditions…….Ukraine winter wheat received an average of 40mm of rain since start of Aug., approx 65% below normal.