September 21, 2017
Grain Marketing Specialist
The corn market traded lower in the overnight on descent harvest yields and a lower soybean complex. Today China sells off another 804,000 tonnes of state reserve corn supply. The 5 day forecast calls for heavy rain in the western corn belt, upper plains, and southern plains. Some frost is possible in the northern corn belt next week it is unlikely to be a killing freeze. The Delta and Southeastern part of the US look to be warm and dry through the rest of this month and into early October which should allow them to blaze through corn and bean harvest. The funds are estimated to be short 147k corn contracts. The market is waiting on a better idea of yields coming off of the fields. The USDA is estimating a 169.9 bpa yield with a looming 2.3 billion bushel carryout.
Beans: Down 4
Beans bouncing sideways over the last few days. The market is still in an uptrend since August. The market awaits to hear actually yield results to determine if the USDA is close when it estimates a 49.9 BPA yield. Export demand has been good this first few weeks of the 17/18 marketing year. USDA export sales will be out this morning. Next week’s rains in the Midwest could halt progress for a while.
Wheat: MPLS up 3 KC down 2
MPLS wheat getting some support from Canada’s poor protein crop that is being harvested, good yields just poor protein. The Australian crop that has suffered from dry weather and now frost could possibly fall below a 20 mmt crop. The Argentina wheat crop struggles in wet conditions. Beneficial rains in the Southern plains is beneficial to winter wheat seeding over the next 2 weeks. Egypts GASC bought 175 tmt of Russia wheat on Tuesday. The US is still not competitive enough to compete.