Fridays rally in the corn market was driven by wheat prices. With the US securing some of the Egyptian wheat tender last week we saw wheat make a nice rally. Right now this is appears to be the only support that corn can find. I look for corn direction in the next two weeks to come from export or sales news in the wheat market until we get to the November S&D report on 11/8/18. Traders are anxiously looking to this report to see if the USDA reduces corn yield again. We should start to see private estimates released later this week.
Good harvest weather over the past week has traders estimating the corn crop is about 60% harvested which would be up from 49% last week.
Brazil looks to be on pace to increase first and second crop corn acres this year due to demand while the US is expected to see a large acreage shift from soybeans to corn next spring. If these two scenarios play out I believe producers should be aggressive sellers of next year’s crop before the US crop goes in the ground.
Be sure to join us on Tuesday 10/30/18 as Compeer Financial will be onsite from 11:00 -1:30 serving lunch.
We will be closing our scale at 3pm on Tuesday and Wednesday this week.
Have a Safe Day!