Morning Comments November 20, 2018
Tuesday, November 20, 2018, 2:11 PM
Submitted by: Landus Cooperative
Corn steady to slightly higher
Beans +2 to 3
The latest crop progress report shows 90% of the U.S. corn harvested, with Iowa at 91%. For soybeans, we’re 91% harvested nationally, and 97% complete in Iowa.
Yesterday, December corn futures finished down 2 1/2. Most of the pressure came from other commodities, with wheat lower and beans pushed down hard on thoughts that the trade dispute with China will not be resolved anytime soon. The one potential bright spot was in the oat market, which saw a new multi-year high. As the old grain traders say, “Oats knows”, meaning, if you follow oat prices long enough, you will see a correlation between oats and corn. Apparently the old traders were not buying enough corn yesterday to turn things around, though. If you have a price in mind that works for your operation, please let us know and we’ll put it in as a firm offer.
As mentioned, the ongoing dispute with China does not appear to be going anywhere positive soon. Soybeans were down significantly yesterday because of this, with January futures off 18 1/2. There is also more of a realization that the ending stocks number for U.S. soybeans is going to continue to weigh on market values, especially if South American growing conditions remain at or above normal, which is the case right now. We recommend taking advantage of any price rallies in soybeans and liquidating a percentage of your ownership if/when these happen.
We still have quite a few deliveries to settle up. As you reach your 20th day, please make sure that we know what you want to do with your deliveries. At the end of day 20, it moves to storage automatically.