Corn prices were supported on borrowed strength in the wheat market along with a bout of short covering. Gains were limited from mostly non-threatening weather for much of the US Midwest over the balance of September. The December contract held above 20-Day MA support level at $3.65 ½. Looking at the July 21 corn contract (with a close at $4.24 today, recent high of $4.30 and contract high so far at $4.42). It may not be a bad place to start hedging some corn out there with current carryout over 2.0 billion bushels for 2019/20 and ideas of 94-95 million acres of corn getting planted next year. This year’s crop might just make it to maturity if the big, hard freeze stays away for a while longer.
Closes: December at $3.71 ¼, up 3 ¼ cents, July at $3.96 ½, up 1 ½ cents, red Dec at $4.05 ¼, up ½ cent.
Weekly export sales estimates: 900-1.3 mmt.
Weekly ethanol production was reported at 1,003,000 barrels per day, down 20k barrels per day. Inventories were up 700k barrels to 23.2 million barrels.
Soybeans down 5 @ $ 8.01
Soybean prices were weaker on non-threatening weather for the later planted soybean crop and uncertainty about whether the US will see future soybean purchases by China. Face to face talks are still on for October to discuss a possible resolution to the current situation between the US and China.
Closes: November at $8.88 ¾, down 5 cents, January at $9.02 ¼, down 5 cents, July at $9.36, down 3 ¾ cents and red November at $9.48, down 4 ¾ cents. The products were mixed with meal down 2-3 bucks at 291.60 and oil up a freckle at 29.87.
Weekly export sales estimates: 700-1.1 mmt for beans, 50-450 tmt for meal and 0-35 tmt for oil.
Soybean harvest is expected to begin this or next week with some early harvest noted in the Northern Plains area.
South America weather conditions have been on the dry side, with farmers gearing up for another planting season.Forecasts suggests warm/dry conditions to continue for this and next week in Argentina and north/north central Brazil, with the extended models showing a wetter pattern developing.