Market Commentary

Dec corn down 1 ½ at $3.435
Jan beans down 2 at $9.88
The DOW is up
USD is stronger
Crude oil down $.02 at $56.40

Good morning,

Corn bears are pointing to slightly improved South American weather and less than ideal U.S. exports. Late last week we were hearing more rumors about improved Chinese buying, but weekly export inspections released yesterday showed nothing major hitting the books. Total inspections for the marketing year (down over -40% from last year) have many of the bears now wondering if the current USDA estimate is a bit overly optimistic. Bulls are hoping to see the funds, who are heavily short this market, balance up a few of their positions ahead of the holiday. Hopefully the short-covering will provide a little bounce to the upside. If you are a producer who needs to prices some bushels nearby you might want to be paying very close attention as a rally could be short-lived.

Crop Progress data after the close confirmed U.S. harvest progress at 90% complete, which was close to expected. This would imply there are still 7.8 million acres left to collect, including just over 1 mil in Iowa, and over 0.5 mil in a handful of states: WI, OH, NE, MN, IN, and IL. Five to ten days of relative dryness should help get most of those bushels collected by the time next week’s report rolls around.

Soybean prices (JAN18 contract) continue to trade within their late-summer range of between $9.30 and $10.10 per bushel. We continue to flirt around with the upper end, but just can't seem to put enough bullish headlines together to breakout to the upside.

BASF, the world’s third-largest maker of crop chemicals, investigated 787 complaints involving soybeans that showed signs of damage linked to the herbicide known as dicamba. According to the company, there was no impact on yields, though the company did not provide specific yield data. Farmers, government regulators and insurance companies have been waiting to assess yields of crops affected by dicamba herbicides since signs of damage linked to the chemical began appearing during the summer. Nationwide, 3.6 million acres of soybeans suffered harm from dicamba, and states launched 2,708 investigations into dicamba-related crop damage, according to data compiled by the University of Missouri. (Source: Reuters)

After months of controversy that ultimately resulted in Tyson Foods Inc. abandoning plans to build a chicken complex in Kansas, the protein giant instead will construct the plant in Humboldt, Tennessee, the company said in a news release. Tyson said it has “accepted the invitation of city, county and state leaders” to build the chicken complex in Gibson County, creating an estimated 1,500 jobs when the facility opens for business in late 2019.

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