Tuesday, November 13, 2018
Closing Markets: Corn -5 old & -4 new Beans -5 old & new
It was a turn-around Tuesday today, with corn futures closing weaker. This morning brought a look at updated weekly U.S. export inspections which had been delayed due to Monday’s holiday. U.S. corn inspections came in at 44.8 mln. bu. which was at the upper end of trade estimates but lower than last week’s total of 50.6 mln. bu. Corn exports need to average 45.2 mln. bu. per week the balance of the marketing year to reach USDA’s 2.450 bln. bu. forecast. The forecast for the Midwest looks mostly unchanged. Rains in the Mid-South may reach up into southern Illinois later this week, but the rest of the Midwest otherwise looks to lean dry over the next four days. Another Midwest snow event could come over the weekend. Temperatures are expected to remain below average but warm in early next week.
Soybean futures also closed the session lower. On the trade front, the rhetoric surrounding U.S./China negotiations appears to be turning friendlier. Treasury Secretary Steven Mnuchin has reportedly reopened talks with the Chinese and lead trade representative Robert Lighthizer is expected to join him to hammer out terms of deal before President Trump and Chinese President Xi meet on November 30th. There is also talk that Chinese buyers appear to be showing some reluctance to contract South American soybeans very far into the next calendar year on the possibility that a U.S./China trade deal could develop. Regardless, U.S soybean shipments remain sharply lower than a year ago due to the loss of Chinese business.
Wheat was trading higher with the help of growing optimism over U.S. export potential. Russian shippers look to be nearing the end of their rope on allowable wheat exports, which would leave the U.S. as an attractively-priced option to source purchases for some of the world's top buyers. Continued dryness for the Black Sea region also places early concern over production potential for next season.
C -30,000 (-6,000); B -117,000 (-4,000); W -71,000 (-8,000); M +9,000 (-3,000); BO -62,000 (-5,000)
Have a great evening!
Grain Originator – Atwood, IL
Topflight Grain Cooperative, Inc.
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