Morning Comments December 13, 2017
Wednesday, December 13, 2017, 8:12 AM
Submitted by: Landus Cooperative
Corn steady to +1
Beans +3 to +4
Yesterday’s WASDE report from the USDA was mostly a non-event. With production numbers not being updated until the January report, all we had to focus on was the demand side and resulting changes to ending stocks.
For corn, the change was even more ethanol usage, by 50 million bushels, with a resulting 50 million decrease in ending stocks to 2.437 billion, still somewhat burdensome, and will continue to keep a lid on any upward movement.
For beans, the change was a reduction in exports by 25 million and a slight increase in seed use (5 million). These 2 changes increased the ending stocks number by 20 million, now showing 445 million, which is very comfortable for that commodity.
Until the next report, about all we’ll have to watch is South American weather, and right now, that is not looking like anything that will give the markets any reason to rally. Throw in a couple of major holidays over the next few weeks, and this market will most likely be fairly narrow and sideways for a while.