Good evening friends!
Corn 354’4 +’2
Soybeans 978’6 +16’2
Chi Wheat 423’2 +2’2
KC Wheat 420’6 +2’2
Cotton 69.99 -.58
The market was awaiting the harvest report from the USDA, especially in cotton as #2 rallied into the close. Last week NC cotton was at 44% GE, this week it fell to 31%. P/VP acreage jumped from 21% to 35%. The storm did some damage as we all know. Expectations on these are tough to come by, I think the direction the price goes over the next 24 hours will be important longer term. US cotton dropped only 1% total as Texas was sideways. NC is the 5th largest cotton producer, if Texas can pick up the slack then the US should be well supplied. I am remain short and looking to sell more. 73 cents in Dec 17 is my target.
Corn conditions went up 1% amidst harvest, I’m not sure how that happens. Farmers are 46% complete with harvest vs 35% last week. Pace should close the gap next week. The boys and girls in Iowa and Minnesota picked up the pace this week. Soybean harvest is right on average at 62% complete. Conditions were flat but went up 1% in excellent. So far, I expect the USDA to hike yields in November.
Today’s green was all about the beans at CBOT today as NOPA crush as export inspections were both solid. Soybean oil led the way for the bean complex, with a +3% day, soybean meal was only up about 1%. Expectations were for a NOPA crush rate of 126-128 Mil Bu. That was somewhat bullish, but the real headline was in soybean oil stocks. The numbers now have bean oil stocks near where they were a year ago. The rate of crush points to more oil in the future, but if Palm oil supplies get low enough the thought is that bean oil takes some demand. Has anyone seen the stocks to use chart in bean oil? Sell your beans and buy the oil.
Other than that, it was a quiet day. Check out the pod for more.
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