Beans: steady/ 1-2 higher
Yesterday we saw a rally in the corn market as we saw Argentinian corn prices begin to climb making the U.S. a little more competitive in the world market. It’s estimated that the Argentine corn planting is at 32%, a little below their average of 34%. Brazil’s first corn crop planting is estimated at 56% done compared to their 62% average. There is some expectation that the trade will lower their yield estimate in the in next week’s report. However, it’s doubtful that it will be enough to change the carryout since they are also expected to lower export numbers as well. The corn yields that are being reported tend to be better than expected in a lot of cases, so there is not a lot of support coming from the supply side at this time.
Soybeans are trying to work a little higher this morning. With a drop in production vs. last year, November futures are trading around 42 cents higher than last year at this time and cash bids are about 90 cents better than this time last year. Brazilian planting is pegged at 31% which is ahead of their 29% average. The bulls are still watching for Chinese trade confirmations but there have been no new developments as of late.