Corn closed 2 cents lower in moderate trade to continue the downward tilt in futures. Trading range was just 3 cents so not a very exciting market. Funds were sellers of 4,000 contracts as of mid-day and are short an estimated 241,000 contracts. Open interest in corn deemed at a 10 year high. Nothing bullish but not a tremendous amount of interest in selling either. Informa came out with 2018 corn acres today at 91.4 mln. and production at 14.629 bln. bu. This equates to a yield near 174 bpa. Coupled with 17/18 ending stocks of 2.5+ bln. bu., total supply for 18/19 would be 17.1 bln. bu. and a new record. SA is currently “OK” weather-wise with just a touch of concern over Argentina’s west end drying out a bit. 17/18 world corn usage is 23 MMT higher than production but this is not concerning to the marketplace currently. Weekly corn sales were 37.4 mln. bu. and a bit disappointing. YTD commitments are 801 mln. bu. vs. 1,088 mln. bu. at this time last year. This lag in sales and continued competition from SA has the trade dubious that we will reach USDA’s 1.925 bln. bu. export projection. Buyers of note today were Japan and “unknown destinations.”
Soybeans closed 4 cents lower, also in moderate trade. Trading range was 8 cents. Funds were sellers of 3,000 contracts at mid-day and are estimated long 30,000 contracts. Soybean futures remain defensive for the week as there is nothing fundamentally supportive in the marketplace. Crop projections are increasing in SA. Informa estimates U.S. bean acres for 2018 at 89.6 mln. with production at 4.397 bln. bu. Yield is estimated near 49.5 bpa. Coupled with carry in of 425 mln. bu., total supply for 18/19 would be 4.822 bln. bu., also record supply. Weekly export sales of 40.6 mln. bu. were a bit disappointing. YTD commitments are 1,197 mln. bu. vs. 1,412 mln. bu. at this time last year. Buyers of note were China (as usual), but also Turkey and the Netherlands.
News from the Coop
Try our mobile website m.acoop.com for smart phones.
Also droid.acoop.com for droid phones.
Let us know if you would like to receive the bids by e-mail!
We also send market quotes out by text message, let us know.