Morning Comments October 4, 2019

Grain Corn Pile Closeup

Opening Calls:

Corn: 1 to 2 Lower

Beans: 1 to 2 Lower

While macro markets were able to stabilize yesterday, the corn market stalled out based on disappointing export sales which brought the bears back to the market. Rain is in the forecast through next week, but there is no frost in the forecast which will potentially extend the growing season and add to yield. We have the October USDA report next Thursday, and the USDA has a historic tendency to increase yields. It will be interesting as they just reduced yield in the September report. The trade is still focused on the size of this crop, the size of the South American crop, and the effects of increased competition and thin ethanol margins on the demand side.

Beans drifted lower yesterday on a lack of news. Exports numbers were better than expected due to China, but this business has been expected. Just like corn, yield, weather and demand are what the trade is looking to figure out, and the markets could remain choppy until they do.

As always, your local GMA has contracts available to help you manage your risk going forward into this year and next.