October 4, 2017
Grain Marketing Specialist
CORN – As of 7:45 - down 1
Not a whole lot of fresh news to work with-- Dec corn settled below the 3.50 threshold yesterday and is uncomfortably close to the contract low of 3.44¼. This is the lowest the market has seen in a few weeks. It seems the reduced stocks number of nearly 2.3 billion bushels from Friday was still too high to sustain a lengthy rally. Hearing “better than expected” yield reports in the corn belt and that is sparking fears that the USDA will raise the 2017 yield estimate from 169.9 in the October 12th WASDE report. Although harvest is going well, we are behind schedule due to rain and facing another upcoming rain delay in both the western and eastern corn belt.
SOYBEANS – As of 7:45 - steady
Yesterday’s trade spent some time in the green until closing time. Harvest is under way in the eastern corn belt and yields are similar to that of corn: better than expected. This trend is expected to continue when harvest gets going in the west, where rains have hindered progress by almost two weeks. Rains mentioned earlier coming for eastern and western areas will set harvest back a little more. Another beneficial shot of rain is set to hit key soy-producing regions of Brazil next week. They should be will into planting shortly.
WHEAT – As of 7:45 - Mpls steady, KC down 1
Yesterday finally saw some technical buying after a 3-day slump stemming from the bearish quarterly stocks report on Friday. The support could also be due to world demand picking up-- Egypt bought 180k tons from Russia yesterday. However, we cannot forget that we are stil sitting on a very ample world supply of wheat. Winter wheat planting in the US is behind schedule due to some rains, which are somewhat welcomed as dryness was a major concern all summer.