November 20, 2017
Producer Marketing Manager
CORN: As of 7:45 – Steady
The Dec contract was up 6 ½ cents on Friday on rumors of up to 25 million bu of Feb-May PNW corn business to China in addition to the steps they have taken to buy more US DDGS. Looking at another demand center……USDA Cattle on Feed report confirmed an eighth consecutive month of strong placements as an expanding cattle herd leads to more cattle feeding. Cattle on feed on November 1 were up 6% from last year and were the largest for this time of year since 2011.
SOYBEANS: As of 7:45 – Down 3
On Friday the soybean market was pulled higher by the strength in the corn as the Jan contract closed 18 cents higher on the day. Overnight we gave back some of Friday’s gains as the market is trading back in the area where the 20,50, and 100 day Moving Average is converging to (9.83 - 9.87). Will it provide support? Ag Rural put their Brazil planting estimate at 73% which equals last year’s pace and 5% above the average for this date. While weather looks benign for Brazil, Argentina is getting some press in regards to their dryness and did not receive any relief over the weekend.
WHEAT: As of 7:45 – Mpls Down 1, KC Down 3
All three wheat complexes were up on Friday in tandem with what was going on in corn, and are lower this morning to start the holiday shortened week. Russian wheat prices showed losses for the third straight week on Friday which is the longest run of losses since August as the Russian ruble currency traded near 3-month lows……not favorable for prices here when they are the largest export competitor.