StateLine Cooperative Afternoon Comments October 28th
Corn North Burt: down 15 $3.67
Corn prices retreated on weakness in the outside markets, with the Dec back to testing the $4 support level. Ukraine corn prices soar on lack of farmer selling against increased demand. End-user pricing was noted.
- Closes: December at $4.01 ¾, down 14 ¼ cents, March at $4.04, down 12 ½ cents, July at $4.05 ½, down 11 ¾ cents and red Dec at $3.82 ½, down 8 ¾ cents.
- South Korea was said to have bought up to 207k tonnes of corn for 20/21. Purchase was said to be most likely from South America and/or South Africa.
- Weekly ethanol production saw a 28k barrel increase to 941k barrels per day. Stocks declined 12k million barrels to 19.6 million barrels.
- Average trade estimates for weekly export sales range from 700 tmt – 1.5 mmt.
Soybean: down 22 @ $9.89
Soybean prices were sharply lower on weakness in the energy and equity markets. The products were weaker, along with broad-based selling across most commodities. Prices drew additional pressure from favorable weather conditions in Brazil.
- Closes: November at $10.59, down 23 ¾ cents, March at $10.43 ¼, down 17 ½ cents, July at $10.36 ¼, down 15 ½ cents and red Nov at $9.66, down 12 cents.
- Soymeal finished down 6-7 bucks and soyoil down 70 points.
- The USDA announced the sale of 110k tonnes of beans to Egypt and 120k tonnes of beans to Unknown for 20/21.
- Average trade estimates for tomorrow’s weekly export sales: 1.0-2.0 mmt for beans, 100-450 tmt for meal and 5-40 tmt for soyoil.
- Indian government has been asked not to lower their import tax on edible oils as higher domestic prices are hoped to encourage their farmers to increase production for the next year. Heavy rains have hurt this year’s edible oil production.
- The canola market was mostly lower on weakness in the US oil market. The nearby contract possibly garnered enough support to finish the day in positive territory, from spillover weakness in the CD$. November closed up a buck and the deferred months were 5-7 bucks lower.