Morning Comments January 16, 2018
Tuesday, January 16, 2018, 8:01 AM
Submitted by: Landus Cooperative
Beans +6 to 7
The WASDE report did little to support corn prices, with the U.S. corn crop increasing the yield to 176.6 bu/acre- which more than offset the 400,000 acre reduction in harvested acres. As far as demand adjustments by the USDA, they were only minor. They did increase feed usage by 10 million bushels, but made no changes to their estimate for either ethanol usage or exports, so the export number will be one to watch going forward. The USDA clearly believes that the current lag in exports will improve going forward due to the uncertainty over the size of the South American crop.
Looking at soybeans, things were a little more exciting following the WASDE release. The USDA did lower the size of the 2017 crop by 34 million bushels, and the stocks did come in lower than trade expectations. The balance sheet still showed an increase of 25 million bushels because the USDA reduced their export estimate, which was no surprise. The USDA also increased their estimate of the Brazilian crop by 2 MMT which more than offset the reduction of 1 MMT to the Argentine crop.
Today, the large short fund position for both corn and soybeans and continued uncertainty of South American weather are supportive for our market.
Reminder: Innovator Meeting today in Jefferson, tomorrow in Templeton and Thursday at 5x80 near Menlo.
Registration begins at 3:15pm with the meeting starting at 3:45pm. Hear updates from our grain, agronomy, and precision teams.
Social hour to follow! Please call o RSVP at 887-778-2226.
Hope to see you there.
Thank you for your business!