For the day, December 2019 corn was down 4 1/2 at $3.71 1/4, and that is down 6 for the week.
December 2020 corn lost 3 1/4 today, ending at $3.95 3/4, down 5 1/4 this week.
January 2020 soybeans ended the day at $9.18 1/4, up 1 1/2 , but lost 12 3/4 this week.
November 2020 beans gained 1 1/4 today, finishing at 9.53 1/4, down 14 for the week.
For the most part, there was really no big, overriding story this week. It was more like a lot of little stories pushing and pulling the market back and forth, but mostly pushing it lower all week. The old saying that “a bull needs to eat every day” was definitely in action this week.
Here are some of the unfinished stories we’re keeping an eye on:
- Ongoing negotiations with China about trade
- Ongoing Impeachment concerns
- Ongoing weather concerns
- Ongoing propane concerns
Some of the positives this week for corn include:
- The lagging harvest progress. We’re catching up, but still behind the 5 year average.
- Corn exports increased, almost double the previous week’s info. However, we are still way behind “normal”.
- Increasing consumption of eggs in China. With all of the issues with their pork supply, it appears more Chinese are turning to eggs for some of their protein needs.
Some of the negatives for corn this week include:
- Ethanol production continues to lag last year’s pace. The weekly production has increased 7 straight weeks, though.
- There is still cheaper corn in the world than the U.S. Earlier this week, a sale from Ukraine to China was reported.
Positives for soybeans this week:
- NOPA crush data showed higher than expected soybean usage in the U.S. for October
- Soyoil stocks also dropped during October.
- Exports continue to be strong. Reported at 48.9 million bushels, it is down from the previous week, but still strong.
- Soybean harvest lags the 5 year pace. Nationally, as of Sunday, it’s estimated at 85% vs. 92% on average. Iowa was 91% done vs. 96% normally.
Negatives for soybeans this week:
- The continuing saga between the U.S. and China. It now appears that we are further apart than many thought even as recently as last week. It may be quite a while before there is anything to sign.
- The largest milk producer in the country, Dean Foods, filed for bankruptcy this week. This is just another indication of reduced demand for cow’s milk in the U.S. and subsequently, soybean meal demand is reducing.
That’s it for this week, if you’d like to listen to our weekly Bull Bear Banter podcast, you can find that link here.