Weekly Recap (delayed from Friday) Oct. 21, 2018
Sunday, October 21, 2018, 3:10 PM
Submitted by: Landus Cooperative
Our Friday recap comes to you on Sunday this week.
Trade started the week on a high note, with December corn closing up 4 cents at $3.78 ¼ and November beans closing up an impressive 24 cents at $8.91 ½ on Monday. This week’s crop progress report showed the national corn harvest to be 39% complete as of Sunday, managing to stay ahead of the average pace of 35%. Beans were another story, as harvest completion lagged behind the average of 53% at 38%. Monday’s Export Inspections report showed corn shipments down from last week, but still strong compared to this time last year. Beans were the opposite story, continuing to lag behind last year but more than double the previous week’s numbers. Beans also received extra support from a better than expected NOPA report, with 160.779 mbu of beans crushed in September.
The rest of the week hovered somewhere between disappointing and uneventful. Profit taking on Turnaround Tuesday resulted in corn closing down 3 cents at $3.75 ¼ and beans down 6 cents at $8.84 ¾. Markets finished Wednesday either side of a penny, with corn down 1 at $3.74 ¼ and beans up 1 at $8.85 ¾. The weekly EIA report showed ethanol stocks were up and production was down, putting output at the lowest total since mid-April. Thursday was definitely our toughest trade day, with corn closing down 3 cents at $3.70 ¾ and beans closing down 23 cents at $8.63 ½. The easiest contributor to this was a disappointing export sales report of 382, 534 MT of corn and 293, 566 MT of beans. Both numbers were well below the lower end of trade estimates and supported the concern that we are stalled on trade talks with China.
Friday, corn closed down 3 ¾ at $3.67 and beans closed down 6 ¾ at $8.56 ¾. For the week, corn lost 6 ¾ cents and beans lost 10 ¾ cents from last Friday’s close. With the drier weather forecast promising continued harvest progress, we expect to continue to see the markets experience downward pressure. As producers are able to get back into the fields, we expect to hear more numbers on yield and quality in the coming week.
If you haven’t already, please subscribe to our weekly podcast, the Bull Bear Banter as part of our Landus Cooperative Experience podcast series. You can listen to it here: www.landuscooperativeexperience.podbean.com
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Have a safe week.