November 21, 2017
Producer Marketing Manager
CORN: As of 7:45 – Down 1
The Dec corn contract managed to close 2 cents higher yesterday after spending most of the session near unchanged. We are seeing the overnight markets a touch weaker. December options go off the board this Friday and there is a lot of open interest in the $3.40 and $3.50 puts with the market in the middle as of this morning’s trade. Export inspections for corn were 24.9 mbu meeting expectations of 20-28 mbu. The US corn crop is 90% completed according to the USDA. SD is at 92% complete and gained 10 points last week with the nice weather.
SOYBEANS: As of 7:45 – Down 1
Soybeans were steady on the day yesterday after spending most of the day in negative territory. The soybean complex was pressured by a one month low in soybean oil as global vegoil markets tanked on the announcement of India increasing import taxes for 15% to 30%. Weekly export inspections were at 78.3 mbu yesterday, within the 66-87 range of estimates, but well below last year’s 98.2 mbu. To date we are running right at 100 million bushels behind last year’s pace. We did see some support yesterday around our 20 day moving average of 9.86 on the Jan contract.
WHEAT: As of 7:45 – Mpls Up 1, KC Down 1
The wheat markets were down yesterday as export inspections were right at the low end of trade expectations (9-17 mbu) at 9.5 mbu, with the majority of that being HRW. It is a struggle to compete with other global exporters, especially Russia who is seeing a 26% bump in exports over last year.