November 28, 2017
Grain Marketing Specialist
Corn – As of 7:45 – down 1
While US harvest is just about finished at 95% complete this week (98% average), South America is planting corn. We won’t see another crop progress report until April 2, 2018. Argentina is pegged at 50% complete, which is 2 points ahead of last year at this time. Professional crop scout Mike Cordonieer holds his estimates for Argy at 42mmt and Brazil at 88mmt, despite his concerns for dryness in Argentina. Export inspections came back at 25.1 mbu, within the range of expectations. Open interest dropped another 26,000 contracts yesterday.
Soybeans – As of 7:45 – down 5
Export inspections yesterday tallied in at 58 mbu, down from 83.6 last week but within expectations. Nearby bean:corn ratio is up around 2.95. Beneficial rains in the Argentine forecast are pressuring the bean market this morning, along with lower meal values. Cordonieer has Brazil pegged at 107 mmt and Argentina at 55 mmt. He also notes that he has a neutral/higher bias for Brazil’s production.
Wheat – As of 7:45 – Mpls down 2, KC up 1
A quiet day yesterday in the wheat markets. 12.7 mbu was the number for weekly export inspections, which was within trade expectations. Egypt’s tender yesterday saw lower offers than their Nov. 16th tender. US wheat continues to struggle on the competitive global market, with the Australian offers 30 cents below the US in the tender. Crop conditions yesterday took KC wheat 2% lower on G/E ratings.