Morning Comments November 9, 2018
Friday, November 9, 2018, 2:11 PM
Submitted by: Landus Cooperative
Corn -2 to 3
Beans – 2 to 4
After the whipsaw action we saw yesterday following the USDA’s latest WASDE report, with both corn and beans down fairly hard and then rallying back to even or almost unchanged, the overnight trading session saw a little more weakness. Traders appear to be still trying to digest all of the new information.
The main takeaway for corn is a reduced yield across the country, now at 178.9, down 1.8 bushels from last month. Feed and export demand were both shaved a little, and the net result was a decrease in the estimated ending stocks by 77 million. However, at 1.736 billion, that is still a very comfortable number. The big change was the acknowledgement of the amount of corn that China is storing, almost doubling previous estimates. This increased World Ending Stocks above 340 million metric tons, an increase of 142 million metric tons. It will take some time for the trade to get their arms around this. We don’t have more corn in the world, we’re just acknowledging it now.
For beans, the yield was also decreased by 1 bushel/acre, but exports were also trimmed back somewhat due to the ongoing issues with Chinese trade. The net effect is an increase to ending U.S. stocks, now sitting at 955 million bushels, which is a rather burdensome amount, especially compared to the last few years.
Seeing some snow flurries across a big part of Iowa today, please be safe as you are out and about. Still some corn to harvest and a lot of field work to be done, just try not to be in too big of a hurry that you compromise safety.
Be sure to listen to this week's podcast featuring the Bull Bear Banter posted later today. All episodes can be found on any smart phone podcast app or online at www.landuscooperativeexperience.podbean.com.
Have a good day!