Morning Comments October 28, 2019

Grain bins dryer

Opening Calls:

Corn 1-2 lower

Beans 2-3 better

Friday the corn market ended steady as there was talk of Chinese business in the news as well as key rainfall totals for the Argentinian crop. We have seen the Argentinian corn price rise relative to the U.S. price, however, the fear in the trade is that by the time our corn becomes competitive in the global market the South American and Ukrainian corn crops will become available to compete with U.S. corn. There is speculation in the trade about the 2020 corn crop that if half or more of the 19 million acres we saw in prevent plant this year get planted to corn, and we have trend line yields, the U.S. will continue to see very large stocks numbers that would put downward pressure on the market. 

November beans finished last week 13 cents lower. The trade is anticipating harvest progress to be between 68 and 71% completed after relatively good weather throughout the corn belt over the weekend. It’s estimated the Brazilian soybean crop is 40% planted which is behind this time last year but in line with their 5 year average. This morning the bean market is attempting to gain back some of its losses from Friday but may struggle due to lack of new fundamental news.

Other than that, all eyes are on the next storm headed our way later today. How long that keeps folks out of fields is the main concern. As always, please be safe.