Morning Comments October 31, 2019


Opening Calls:

Corn: 1-2 lower

Beans: steady to lower 

The corn market rallied yesterday with the concern of snow that fell over a majority of the corn belt yesterday and overnight. The market was also reacting to news that Argentine exporters have pulled offers for January corn due to concerns that the new election will impose future export taxes. There is talk in the trade that we will see the Black Sea region become the most competitive corn in the global market now. Ethanol Production rose slightly to 295 million gallons from 293 million last week. Even with the higher production, ethanol stocks fell to 886 million gallons from 897 million. The trade is expecting a very good crop this year despite the struggles of the growing season. The next USDA WASDE will be released November 8th.

Beans traded lower yesterday on news that President Trump and President Xi cancelled their meeting to sign the first phase of the trade deal. We will see the weekly export sales report this morning. The trade is thinking inspections will fall in the 650,000 mt to 1.0 mmt range. Despite the market being down this week, we are still 65-70 cents better than the fall lows.