Dec corn down 2 ¼ at $3.8575
Nov beans down 1 ¾ at $9.3225
The DOW is down
USD is stronger
Crude oil down $.69 at $53.79
Corn bulls are trying to argue lower U.S. yields, a little weather uncertainty in South America, and rumors perhaps of Chinese quota adjustment for corn, sorghum, and DDGs. Bears are pointing towards the USDA raising its yield forecast in its recent October report and raising weekly crop-conditions this week. There have also been more reports out of the fields that the harvest is generating slightly better than expected results for corn and less than anticipated results for soybeans.
Soybeans traders continue to debate final U.S. production, upcoming South American weather, and China’s next move regarding U.S. demand. Another round of cold weather across the Northern and Western belt of the U.S. could once again put a portion of the unharvested soybean acres in harm’s way. South American weather conditions aren’t dire enough right now to attract a heavy wave of bullish interest.
China is rumored to begin offering importers of U.S. soybeans exemptions on a 30% import tax of up to 10 million metric tons ahead of the next round of trade talks next month. According to AgriCensus market sources, officials with the government met with a range of importers – U.S.-owned and Chinese-owned crushers – this week in a move that could see a further 150 cargoes of soybeans purchased. The timescale of shipment was not given. The Chinese government was said to have held talks with international soybean importers including Bunge, Louis Dreyfus and Cargill. The latest move could be seen as a further thaw in the trade relationship between the world’s two biggest economies as it allows foreign-owned crushers to import soybeans at a reduced tariff for the first time. (Source: AgriCensus)