Morning Commentary

Dec corn up 1 ¼ at $3.735

Jan beans up 2 ½ at $8.82

The DOW is down

USD is stronger

Crude oil down $.06 at $61.61

Good morning,

Corn traders will be closely monitoring the USDA’s adjustment to their U.S. yield estimate, most are looking for a second consecutive adjustment lower. Demand is also in question as bears believe the USDA has enough evidence or reason to slightly trim ethanol, exports, and feed and residual usage. Bears also believe there’s enough evidence and reason to bump the Brazilian corn production estimate slightly higher.  Hedge funds are even corn so they will push this market one way or the other based on the report.

Soybean traders are eager to see what the USDA will do with their U.S. yield estimate, export demand, and perhaps a slight adjustment to South American production. Regardless, most suspect the U.S. balance sheet to stay burdensome. Don’t forget, Conab is also updating their Brazil production forecast this morning. Following today’s reports, all eyes will quickly shift to U.S. and Chinese trade relations, specifically the upcoming G20 meeting scheduled for the end of November in Argentina. Bulls are hooping President Trump and Chinese President Xi take steps at the meeting to resolve the current trade conflict. Keep in mind, the JAN19 contract hasn’t closed back above $9.15 since early August or above $9.30 per bushel since early-June. 

Margarita Louis-Dreyfus, the majority shareholder of ag commodity trader Louis Dreyfus Company said she had completed arrangements to finance a requirement to buy shares from minority shareholders. Minority family shareholders had requested in 2015 to sell 16.6 percent of LDC’s holding company to Margarita Louis-Dreyfus’ Akira trust, in a buyout estimated at $800-$900 million. LDC does not intend to depart from its long-standing dividend practice, consisting of a payout of up to 50 percent of net earnings and ad hoc special dividends related to strategic divestments, she added in the statement. (Source: Reuters)

In a shift from this year’s ban on the use of dicamba during the growing season, the state Plant Board tentatively approved, 11-4, a proposal for a One 15 cuts-off date for use for the weedkiller on GMO cotton and soybeans in 2019. (Source: Arkansas Democrat Gazette)

The agency has signed off on Exterior, form animal health company Elanco, a drug that can reduce ammonia gas emissions from beef cattle waste. Multiple studies showed that Experior is safe to feed to beef cattle and that meat from cattle treated with Experior is safe for people to eat. More than 4,000 cattle were studied, and the results showed a low incidence of health issues overall, and no difference between control animals and those receiving Experior. (Source: FDA)


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