November 15, 2019

CORN

Corn futures faltered into the close to settle 4 cents lower today and 6 cents lower for the week. Funds continue to work from the short side with an estimated position of 131,000 contracts short as we started the day. Not enough bullish news and an generally open harvest window the second half of this week allowed pressure on futures this week. The DOW is 160 points higher today on comments that the U.S. and China are closer to agreeing on phase 1 of the trade deal, so the financials seem more willing to chase this story than futures. U.S. wants a commitment from China to buy a set dollar amount of ag products while China wants the U.S. to drop tariffs for the agreement – neither side too willing to step forward on the other’s request. Next set of U.S. tariffs to start December 15th on 156 bln. dollars of Chinese goods. Somewhat overlooked is Speaker Pelosi’s comment that USMCA could come to a vote in early December. Weekly export sales were 22.9 mln. bu. and bring YTD commitments to 491 mln. bu. vs. 922 mln. bu. last year. El Salvador, Japan, and Mexico the buyers of note. Central America and Japan the only steady buyers of U.S. corn. Brazil still exporting corn and their export estimate may increase by another 1-2 MMT.

SOYBEANS

 Soybeans closed 1 cent higher today but 13 cents lower for the week. Funds still trading the long side and estimated to hold a long position of 47,000 contracts to begin the day. News that the U.S. and China were making trade progress did not generate much trade excitement. NOPA crush for October a new record for the month at 175.40 mln. bu., much above expectations didn’t either, though SBM gained $4 today. Weekly export sales came in at 46.0 mln. bu. and bring YTD commitments to 818 mln. bu. vs. 804 mln. bu. last year. Buyers of note only China and Egypt. China is a quiet buyer of U.S. soybeans, we just aren’t seeing the large quantity purchases that would excite the trade. NOLA line-up for vessels destined for China is expected to be strong again next week, though.

WEEKEND HOURS!

Dalton City:7-5 Saturday, Closed Sunday

Bethany: 7-5 Saturday, 12-5 Sunday