Today, December 2019 corn closed down ¾ at $3.89 ½, up 2 ½ for the week. December 2020 corn closed unchanged at $4.05 ¾, up 8 ¼ for the week. January soybeans closed up 4 ½ at $9.36 ¾, up 2 ¼ for the week. November 2020 soybeans closed up 1 today at $9.72, up 4 ¼ for the week.
This week, an influx of wet corn increased dryer activity in many areas. With that came an increased demand for propane and supply issues at many terminals. As a result, many states including Iowa declared a state of emergency suspending the regulatory provisions pertaining to service hours for crews and drivers delivering propane for the month of November.
Ethanol production continued to rise again this week, bringing us to 5 weeks in a row on increases. In addition to creating a wetter crop, the snow in many areas of the Midwest has slowed harvest progress for some. In Monday’s crop progress report, corn harvest was at 41% complete versus 61% complete last year/for the 5 year average. It’s also believed that some of the recent support for the corn market could’ve come from the election of Argentina’s new president. Concerns about how his administration will adjust export taxes have held up corn sales there, which could make the US more competitive in the global market. Trade is also keeping a close eye on the 19 million acres of prevent plant, and the possibility of a large portion of those acres coming back into corn production next year.
Soybean export inspections are looking promising, with last week’s number of 57.6 million bushels the highest so far this marketing year. It is looking more promising that we will be on-track with USDA’s projections for soybean exports. Where corn harvest continues to lag well behind last year and the 5 year average, but soybean harvest seems to be catching up. Monday’s report showed the national progress at 62%, not far from the 69% number from this same time last year. In global news, the cancellation of the APEC Summit presents some concerns that the “phase 1” agreement no longer has a timeline for being signed.
Looking ahead: The November WASDE will be released next Friday, November 8th at 11 AM. We don’t normally anticipate this report to be a particularly eventful market mover, but there have been some surprises in recent reports.