PM Comments 10/27/2014
Monday, October 27, 2014, 4:10 PM
Submitted by: Joel Pudenz
We had another strong close today for the soybean complex, particularly for meal and soybeans. Soybean meal closed $26/ton higher and soybeans were nearly 30 cents higher on the day. Meal basis remains firm as concerns boil about interior processors having low coverage for the coming weeks (just as corn harvest is getting kicked off). Weekly export inspections were higher than expectations today (80.7 mil vs. 65 – 75 mil expected), adding additional support to a soybean market that’s been on a bullish run since early October. Additionally, funds have been buyers of soybeans and corn the last few weeks, sparking the rallies we’ve seen recently. Spillover support from beans, fund support, and a weaker dollar all contributed to corn futures closing a dime higher today.
Harvest progress projections show the U.S. at 46% complete on corn harvest (65% average) and 70% complete on soybean harvest (76% average). Iowa is 36% complete on corn (65% average) and 81% on soybeans (85% average). A few scattered showers are currently moving across Northern Iowa, but the forecast this week looks outstanding for harvest. Temperatures will cool off a bit, but chances of precipitation are few and far between.
Have a great night!