Tremont Coop Grain Commentary

Thursday, September 13th

7:17 AM

Current market: corn up , beans down 1

Optimism over trade talks pushed overnight Asian markets to higher closes. The imposition of tariffs on the $200B of goods from President Trump hasn't happened yet. No changes to Bank of England monetary policy have European markets higher at midday but Turkey did hike their rates higher in defiance of their prime minister; possible Brexit risks still persist. Overnight, hurricane Florence was downgraded to a Cat 2, but the storm still continues to move slowly. US markets are pointing towards small gains at the open.

Export sales announcements of 5.6 mbu of corn to Costa Rica, 4 mbu of beans to Mexico and 4.4 mbu of beans to 'Unknown'. Weekly export sales for week ended 9/6/18 were smaller on corn than last week (30.5 mbu) and similar for soybeans (25.5 mbu). Total outstanding sales of corn sit at 568.6 mbu, soybeans at 592.3 mbu -- this time last year those numbers were 385 mbu and 582 mbu. While the absence of China from the purchase sheet has caused some concern, sales still seem fairly healthy and yesterday's USDA report suggested only a minor drop-off in soybean exports year-over-year (2.060 bbu vs 2.130 bbu last year). The other side of the equation is with increases to corn and soybean yield from the USDA, and big crops usually get bigger, will we see another upward revision in the October report or will enough early yield reports start disappointing the prospects for a 182 or 183 national corn yield and a soybean yield up towards 53 or 54?

 

AG


 

Disclaimer: This commentary does not represent the views of Tremont Cooperative Grain Company, but rather one author's opinions. Data used in this commentary is taken from sources believed to be accurate, and is intended for informational purposes only and should not be solely used to conduct any type of trading strategy. For more information, please contact Tremont Cooperative Grain Company at 309-925-4981, or email info@tremont.coop.

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