Morning Comments October 11, 2017
Wednesday, October 11, 2017, 9:10 AM
Submitted by: Landus Cooperative
Corn: down 1 to 2
Beans: steady to slightly lower
We saw slight weakness in the overnight markets, with corn losing 1 1/2 cents and beans staying about even to -1/4. Pretty quiet overall.
The big news this week is the October USDA WASDE will be out tomorrow morning at 11 a.m. With the USDA increasing good/excellent crop ratings yesterday afternoon, there are some traders out there believing they may increase yields on the report tomorrow.
This morning, the U.S. dollar is trading slightly lower, while crude is hanging in there around steady. Equity markets have backed off some following their record close yesterday for the Dow, NASDAQ, and S & P. Yesterday was the 47th time the Dow has closed at a record high this year.
Brazil’s crop is estimated to be down about 6% from last year, due in part to lower anticipated yields, putting soy production at 107 MMTs. South American forecast remains dry for the central and northern areas, while southern Brazil will see heavy rains. Long range forecasts, however, are indicating the dry conditions could persist across the major crop areas through October.
As everyone is well aware, rain has been slowing our harvest down much more than we would like. The majority of the Midwest is expected to see more precipitation throughout the week into early next week. NOAA’s 6-10 day outlook shows above normal temps and normal to below normal precipitation for much of the Corn Belt. Hopefully this means we’ll get some good drying weather and break from the rain so we can get back in the field!
We are starting to see and hear more talk about people switching to corn until the beans dry back down and many reports of better than expected yields out there…good for us with commodity prices so low, but what will this mean for future market prices?
Have a great day, we appreciate your business!