On The Money Grain Commentary 11-8-18

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Corn Outlook:

The USDA’s balance sheet for corn shows ending stocks falling 77 MB from October to 1.736 BB. They lowered their yield estimate to 178.9 bpa from 180.7 bpa. Although the harvest forecast was trimmed, exports were cut 25 MB to 2.450 BB. Global stocks of corn for 2018-19 are forecast at 307.5 million tons compared to 159.4 in October. However, the stocks outside of China were down. In other developments, corn harvest has turned into the last furlong at 76 percent complete. Meanwhile, following 3 weeks of subpar shipments, inspections last week improved at 49.3 MB, their highest since early October.

Bean Outlook:

We are staring at a mountain of soybeans unless Mother Nature puts a hex on weather in South America this winter. USDA projects ending stocks at 955 MB, 70 MB higher than October. While their yield estimate was lowered 1.0 bpa to 52.1 bpa, exports were whacked 160 MB to 1.9 BB because of the trade tariff with China. World stocks for 2018-19 are projected at 112.1 million tons, up 12.4 percent from a year ago. It is hard to muster anything positive from the report. In other developments, soybean harvest is winding down at 83 percent complete. Looking at exports, inspections last week were 45.1 MB.

Bean Outlook:

We are staring at a mountain of soybeans unless Mother Nature puts a hex on weather in South America this winter. USDA projects ending stocks at 955 MB, 70 MB higher than October. While their yield estimate was lowered 1.0 bpa to 52.1 bpa, exports were whacked 160 MB to 1.9 BB because of the trade tariff with China. World stocks for 2018-19 are projected at 112.1 million tons, up 12.4 percent from a year ago. It is hard to muster anything positive from the report. In other developments, soybean harvest is winding down at 83 percent complete. Looking at exports, inspections last week were 45.1 MB.

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