Corn 1 to 2 higher
Beans 6 to 7 higher
The WASDE report was friendly to the corn market yesterday. The USDA lowered yield 3 bu/acre from 178.4 to 175.8 and lowered 20/21 ending stocks from 2.167 billion bushels to 1.702 billion bushels which is a drastic change. The 465 million bushel cut in the estimated 2020/21 U.S. corn ending stocks was the largest ever downward revision in the November report and the largest monthly decline for any month from the October WASDE report forward. The USDA sharply raised 2020/21 US corn exports by 325 million bushels from last month to 2.650 billion bushels, now reflecting an estimated 872 million bushel increase from last year’s 1.778 billion bushel. Corn is trading higher this morning on carry through buying after yesterday’s surprise USDA report. The combination of a strong cash market with strong demand and South American weather concerns should continue to support the corn market as we move into the early winter months.
The soybean market pushed up into new contract high territory and closed sharply higher yesterday. The USDA’s report yesterday also surprised the market with the soybean carryout pulled down below 190 million bushels, the first time since 2015/2016. The change was supply driven as demand estimates were left unchanged. Chinese buying of US soybeans has slowed of late and may continue at a much more modest pace in the near future, as further South American weather/crop prospects are awaited. The soybean market is trading higher this morning on carry through buying following yesterday’s surprisingly friendly USDA report.
It is Veterans Day in the U.S. with Government Offices closed today as well as banks, the U.S. post office and several markets. Not the ag markets. We trade on.
Thank you to all the Veterans out there that have served faithfully.