Corn: steady to 1 lower
Beans: 3 to 4 higher
Corn was able to post a positive close yesterday but a decline in ethanol production limited a significant rally. Ethanol production fell to 271 million gallons from 274 million gallons last week. Corn used for ethanol is projected to finish at 4.851 billion bushels for the marketing year which is right in line with the USDA’s current estimate of 4.850 billion bushels. U.S. gasoline demand declined last week to 8.786 million barrels per day from 9.161 Mbpd the previous week but was right in line with the average demand over the last six weeks of 8.775 Mbpd as there has been a clear stabilization since the post COVID shock in the spring to early summer months. Corn ended trading a little lower this morning, after a small 2 sided trade overnight. There continues to be a lot of confusion about the crop size, however, the weather has slightly improved in many areas and the Pro Farmer tour seemed to confirm that a large crop is still out there especially for places that have received rain in the last 48 hours.
The soybean market rallied yesterday on Chinese buying optimism, crop concerns, and more substantial fund buying. The trade is looking for export sales in the 37-66 million bushels range in this morning’s export sales report. Beans are trading higher this morning on rumors/stories that China has booked 8 or 9 cargoes of beans from the U.S. for the December/January time frame as well as the expected positive export sales report. The funds are currently holding a significant long position and heading into next Friday’s WASDE report, this could bring some high volatility into the market the next couple of days.
With Harvest just around the corner, please contact your local Landus office to make sure we have time to get your deliveries set up for you. Thanks