FEE Grain Comments


Tue 11.27.18

CORN settled at 368-4 up 0-4 CH  | BEANS settled at 875-4 up 13-2 SF

Corn traded in a 3 cent range caught between higher beans and lower wheat. With little news to provide a direction the market ultimately settled mixed with the front gaining on the back months.  Over in beans it was yet another whipsaw day ahead of the much anticipated talks between the U.S. and China.  There was tough rhetoric out of Washington saying that the existing tariffs will increase from 10% to 25% with the possible addition of tariffs on the remaining $267b worth of imports if the negotiations stall.  Given that the market held up so well under such news, it leads one to believe the rest of the week may be a volitile "buy the rumor/sell the fact" kind of trade.


Mon 11.26.18

CORN closes @ 368-0, dn 2-4 CH |  BEANS close @ 862-2, dn 18-6 SF

Funds were sellers of an estimated 5900 contracts of corn and 7500 beans.  Concerns over a potentially slowing economy, which would hinder feed demand weighed on corn today. While thoughts that the meeting between the U.S. and China later this week will not be as fruitfull as once hoped, and favorable SA weather weighed heavily on the beans today.


Wed 11.21.18

CORN up 0-4 to settle at 372-6 CH | BEANS up 2-0 to settle at 883- SF

 

Quit news day again, pre-holiday trade with beans trading both sides of unch'd and still quite sensitive to trade rhetoric.  Corn traded back and forth as well ahead of the perceived long weekend ahead, as most traders will take Friday off.


Tue 11.20.18

CORN closes down 1 @ 372-2 CH | BEANS close up 7-2 @ 881 SF

Quiet news day today with corn mostly following the higher dollar and lower crude oil.  Beans experienced a bit of a turnaround Tuesday effect with more comments out of Washington saying that the US does want a deal with China, although any deal reached would need to be in the US' best interests. 


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

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