Morning Comments November 7, 2016

Cash grain in Jefferson to start the week this morning, has corn off 1 cent at 3.01 and beans up 8 cents at 9.14.  Last week saw the Dec. corn decline 6 ¼ cents and July ’17 corn fall 4 ½ cents.  Beans last week saw both the Nov. and the July ’17 both fall 19 ¾ cents.  We have a very large crop out there and the market is trying to get a grasp on direction.  This Wednesday has an updated WASDE report being issued.

 

All of the markets are being affected by tomorrow’s upcoming election.  Many opinions on pre and post-election actions depending on the outcomes of the elections.  I do encourage you to use your right to vote in tomorrow’s elections.

 

The funds are currently short the corn market 65,000 contracts. This is a sharp decline from the 177,000 shorts they held at the end of September.  This liquidation of shorts has helped support the corn market by an orderly reduction.  Last week bean funds added 1,000 contracts to stand in the area of 110,000 long.

 

The South American weather is not really a factor in the market.  Planting is progressing and only a little behind normal.  They have no serious issues impacting the crop at this time.  After the elections, the WASDE report, and the wrap up of harvest, all eyes will turn toward the South American production.  After that the U.S. planting intentions will roll into the picture.

 

Last Friday the dollar hit a 3 week low.  This morning the dollar is trading higher at 97.62.  Crude oil hit a 1.5 month low last week.  This morning it is also higher at 44.63.  Ethanol has risen again in relationship to gas to currently stand at a premium of 16.94 cents per gallon.

 

Will the grain market this week be WILD or MILD??  Keep in touch with your Landus Cooperative Grain Marketing Advisor.  Your Advisor will discuss with you your marketing plan and/or give ideas that may fit your operation.  Enjoy your week – Pat Griffin.