Corn 2 to 4 better
Beans steady to 1 better
The corn market followed beans higher yesterday, following September’s WASDE report, with Dec 19 finishing 7 cents higher. The USDA raised the 2018/19 ending stocks to 2.445 billion bushels, which is a 31-year high, but lowered both yield and production for corn. The market is expecting yields and production will continue to decline throughout the fall, however, the U.S. still has to deal with limited export potential through the end of the year with the Black Sea region and South America dominating the world market. The corn market is trading higher this morning building off of yesterday’s momentum. The technical indicators have turned higher and the trade will be focusing on whether or not that leads to more fund short covering.
November beans finished up 29 cents yesterday following the USDA reducing the bean yield and production, positive export demand potential, the dry South American weather, and the reduction in ending stocks for both 2018/19 and 2019/20. Crush estimates increased by 20 million bushes and export estimates increased by 45 million bushels. The bean market is trading higher this morning due to the positive closes yesterday and the lower new crop carry-out levels.