Good afternoon, Today was a weaker day for corn as crude oil, fund selling, and weaker exports all had a negative impact on corn. Funds were sellers of an estimated 5000 contracts in the morning. December and March contracts both lost 5 cents on the day. Corn export sales the past three weeks have been well below the average needed to reach the USDA’s projection for 2014/15 leading to talk that export demand is overstated given the plentiful level of world corn stocks. There were rumors today of French feed wheat being sold into the Southeast U.S. Yesterday’s crop conditions report showed the U.S. corn harvest 89% complete, right at the five year average. That would leave nearly 1.6 billion bu. to be harvested. Soybeans finished the day lower with the front months finishing down 14 cents and Nov15 finishing down 15 cents. Beans were pressured by rumors that a couple of cargoes of U.S. soymeal sales to the EU had been switched to South America. Commodity funds added pressured by selling an estimated 4000 soybean contracts as of noon. South American soymeal prices are at a record discount to U.S. offers which is prompting talk of additional soymeal exports being switched from the U.S. to South America. The recent rally in soybean futures was fueled to a large degree by strong soymeal prices. The record soybean crush reported yesterday for the month of October indicates that domestic meal supplies are increasing. The combination of increasing meal supplies and export cancelations may act as a brake on soybean and soymeal markets in the near term. South American weather is non-threatening for the near term as sporadic rainfall and a lack of excessive heat is forecast into early December. Adam Bauer Grain Originator Western Grain Marketing Cell:309-333-7617 Office:309-653-2650
Posted on: Tue, 18 Nov 2014 21:22:02 +0000
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