FEE Grain Comments

Wed 11.14.18

Corn mixed on the day with CZ closing up 0-4 @ 367- | Beans up 5-2 SF @ 883-4.

Quiet trading day today with corn trading both sides of unch'd with nearby gaining on the deferreds.  There was an export announcement stating 212,000 MT's of corn was sold to Mexico.  That appears to have been offset by harvest pressure, as good weather has prevailed so far.  Beans traded higher today on optimism that a deal may be worked out between the US and China, with rumors circulating that the Chinese Vice Premier will travel to Washington ahead of the G20 summit to establish a framework to any trade agreeement.

Tue 11.13.18

CORN down 4-6 @ 366-4 CZ | BEANS down 5-0 @ 878-2 SF

Turn around Tuesday! Corn remains stuck between 360-4 and 379, the Oct 25 low and the report day high respectively.  Trading below the 360-4 support could open the door to test the mid-september low, while rallying above 379 will invite a test of the resistance at 388-4.  Today's export inspections were at the upper end of expectations (44.8 mln. bu.), but right where they need to be to keep up with the USDA projections. Beans are still trading sideways since the Nov. 8 report, and a test of that low may happen if initial support at 864 is breached.  On a positive note, trade negotiations have opened up again between the US and China, and there are thoughts that Steve Mnuchin and Robert Lightizer are working to have terms of a deal prior to the Nov. 30th meeting between President's Trump and Xi.  There are also some stories that Chinese buyers are hesitant to contract SA beans far into

Mon 11.19.18

CORN off 2-4 closing at 373-2 CH | BEANS off 18-4 closing at 873-6 SF.

Another day at the races, trading political comments out of D.C.   Comments regarding China as a regional military threat took the day and overrode any perceived postive comments that were said late last week.  Funds sold an estimated 14,000 contracts by mid-day.  In corn funds sold an estimated 4,000 contracts based on weak shipments and carryover weakness from beans and wheat.   

Report day 11.08.18

CORN up 1-2 @ 373-4 CZ | BEANS down 0-4 @ 879 SF

Crazy report day only to end near unch'd!  Corn traded in an 13 cent range today after USDA surprisingly lowered yield to 178.9 bpa (still a record,) production down 152 mln bu., and then lowered demand 75 mln bu., bringing ending stocks to 1.736 bln bu., slightly below estimates.

Beans had a wild ride as well, with an 18 cent range.  The report came out with a much lower than expected yield of 52.1 bpa, but also a much lower export figure of 1.9 bln bu, bringing ending stocks in higher than expectations at 955 mln bu.

Wed 11.07.18

CORN down 1-0 at 372-2 CZ | BEANS down 4-6 at 879-4 SF

Quiet trade day ahead of tomorrow's USDA WASDE report at 11a.  The trade is expecting small decreases in both corn and bean production numbers, and will be awaiting how the USDA handles the demand side of the sheet given that corn sales are significantly ahead of last year and bean sales behind.

Thur 11.01.18

CORN up 3-4 @ 366-6 CZ | BEANS up 30-2 @ 882-0 SF

What a day!  The day started out weaker for both corn and beans given that the weekly export figures came in on the low end of expectations for both commodities.  Corn exports were just 15.5 mbu, about half of what the weekly average needs to be for us to meet the USDA's projections, as for beans, it was the same story.  Export sales came in at just 14.5 mbu, again about half of what the trade is looking for to meet the USDA projections.  Then came the explosion!  President Trump tweeted that he had a very good conversation with President Xi from China and that they had talked about trade and North Korea, confirming that they will meet at the G20 summit later this month.  The President's tweet, although containing no real information, sparked a massive short cover rally in the beans which spilled over a little to the corn.  Seems no one wants to be caught short during the summit.  It is estimated that funds

Wed 10.31.18

Corn down 1-4 @ 363-2 CZ | Beans up 4-6 @ 851-6 SF

Corn was mildly lower today on harvest pressure and the unwinding of long corn/short bean spreads for month end.  Conversely, the bean market was pushed higher with the corn/bean spread action as well as some more harvest delaying rains in the forcast ahead. 

Tue 10.30.18

Corn down 2 at 364-6 CZ | Beans down 5-2 at 847-0 SF

It was a quiet news day today in the grain markets as corn mostly followed wheat lower throughout the day.  As for beans they driffted lower from continued downward harvest pressure and a seemingly growing balance sheet. 

Tue 10.23.18

Corn up 3/4 @ 370 1/4 CZ | Beans down 1 1/2 @ 871 SF

Jan beans are now "Top Step" in reference to being the lead month as Nov options are set to expire this coming Friday.  Overall, a quiet news day as outside equity markets shrugged off most of their negativity throughout the day, and the grains followed, but succumed to typical harvest pressure to end the day. 

Mon 10.22.18

Corn up 2 1/2 @ 369 1/2 CZ | Beans up 1 3/4 @ 858 1/2 SX

Harvest progress just released shows corn at 49% complete just ahead of the average for this time of 47%, and beans at 53% harvested vs 69% on average.  Markets are quiet overall with little news to move it one way or the other and good weather for harvest. 

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