The Export report was bearish for corn, soybeans, and wheat. The market wants to see wheat sales to justify $5 prices. The corn and soybean market seasonally enjoy increased export sales this time of year but that has not been the case.
US Wheat is cheaper than EU wheat but still not as competitive with Russia in the spot market. For December delivery US Wheat is the lowest price on the market but we need to see actual sales and demand for Dec/Jan/Feb.
Soybeans are really missing Chinese demand. This time of year China is confirming purchases for large quantities of soybeans. Last year this time we had sales of 8.7 mmts to China. As of today we are only at 1.03 mmts. As for corn, the US has sold 32% more in the export market than last year, but two weeks in a row of poor export sales has disappointed traders.
To top it all off, the WSJ reported today that the US won’t talk to China on trade until it gets a specific plan on to halt technology theft. Up until this morning I thought beans could bounce at these levels. Unfortunately we could trade another leg lower with all the bearish news piling up.
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