Corn and beans are both trading lower this morning down 1 and 4 respectively. Traders are watching three things for direction going forward:
1. Today’s election results.
2. Thursdays USDA S&D report.
3. Chinese and US trade talks.
Today’s mid-term elections have been billed in the media as a referendum on President Trump’s first two years in office. It goes without saying that the White House’s trade war has led to frustrating 5 to 6 months for American farmers as they got caught in the crossfire. However, there has been a dramatic shift in rhetoric from both sides in the past week. The idea of some sort of a truce or halt to the trade war materializes when Presidents Trump and Xi sit down at the G20 meeting at the month is gaining significant traction.
Estimates for the USDA report are calling for a yield reduction from the October report in corn from 180.7 to 180.0 and soybeans from 53.1 to 53.0. Ending stocks in corn are estimated at 1.78 billion bushels while soybeans are estimated at 900 million bushels. Both of these levels would indicate plenty of grain and sideways markets.
Last night’s Harvest Progress report showed the US is 76% complete on corn compared to 68% last year and a five year average of 77%. Wisconsin is reported at 59% complete this week compared to 35% last year and 51% on average. It is still early, but the trade doesn’t look for a significant change in next weeks numbers with the weekend and early week rains.
We have a HOT DEAL for producers looking to move corn in April/May this coming year. You can lock in a basis of -10 CK19!! Give us a call for details.
Make sure you get out and Vote today!!
Have a Great Day!!