Nov 10 2017
Grain Marketing Specialist
Corn 1-2 Lower
A lack luster overnight session as CZ fails to follow through on weakness from yesterday’s bearish USDA report. CZ holds so far above yesterday’s low of $3.40 ¾ with potential to see follow through selling going into the weekend USDA surprised the market with a yield of 175.4bpa- a record US corn yield. As the day wore on CZ dipped below its old contract low to set a new one at $3.40 ¾…USDA raised carryout to a large 2.487 billion bushels, up 192mb from this past year exports were raised which as well makes sense of larger crop, equals lower prices, equals more demand
Soybeans: 1-2 Lower
A quiet overnight session after yesterday’s neutral report. USDA maintains its trend of recent years, which is slowly dropping carryout, usually by increasing demand. Double digit losses yesterday after USDA released a neutral soybean report. USDA, dropped prod 6mb, though they left yield and acres unchanged. And though they left all demand lines unchanged too, the carryout to drop 5mb. USDA did raise the China black Hole usage up 2mmt to 97mmt for 17/18.
Wheat: 1-2 Lower
Slightly weaker overnight trade but the overall large stx/use ratio slowly gets smaller month/month. HRW at 52.1%, HRS 29.3%. USDA lowered US carryout 25mb by raising exports 25mb…but USDA has had a recent tendency to do this and then add back later. But overall balance sheets need some tightening if prices are to sustain any sort of bounce/move higher. USDA tightened HRS carryout 5mb, HRW 26 million, but added a few bushels back into White, SRW and durum