October 16, 2017
Grain Marketing Specialist
Corn: 1 lower
Last week, in the WASDE Report, the USDA said that corn will make 171.8 bushels per acre, and production will be 14.28 billion bushels. 2017/18 carry out is expected to be around 2.34 billion bushels. This morning we see corn fractionally lower. Prior to the report, last Thursday, the December corn complex hit a new low at $3.42’4 before soybeans lifted corn back into its sideways trend. Resistance is at $3.53. Weather outlook looks favorable for harvest as temps are expected to be above normal, with precipitation expected to be below normal. Harvest progress is expected to be reported at 30% complete this afternoon.
Soybeans: 4 lower
USDA lowered yield, last Thursday, from 49.9 to 49.5 bushels per acre. 2017/18 production stayed the same at 4.431 billion bushels. This was justified by the raise in soybean acres. The big surprise came when USDA lowered 2016/17 production 45 million bushels! The market opened lower on the overnight after closing at the $10 resistance point last Friday. A little profit taking is normal, and somewhat expected after a 35-cent gain over the last two trading days.
Wheat: MPLS and KW 1 higher
World ending stocks, reported last week at 268.1 million metric tons, came in higher than expectations. US carryout was slightly above expectations at 960 million bushels. Wheat continues to be bearish as winter wheat planting continues to be favorable.