The WASDE was bearish for corn and wheat while confirming a massive carryout of soybeans. Corn yields came in at 181.3 and soybeans were 52.8. Global wheat stocks increased as the USDA increased Russian wheat production instead of lowering it.
Going forward corn will most likely be range bound between $3.40 and $3.70 in December. Wheat needs to catch a bid on the export market or the market will continue to grind lower. HRW wheat should be the most competitively priced wheat for HiPro but we still need someone to come in and buy it. For soybeans the market should be range bound between $8.00 and $8.80 until more is known about US/Chinese trade relations and the South American weather.
Once this report is digested I think we go to a range bound market for corn for the rest of 2018. Only a Chinese trade deal or widespread planting delays in South America could cause a major rally for soybeans. Wheat could rally but now that US wheat is competitive on the global market we need to make export sales. If we don’t see any pick up in exports then we grind lower.
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