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Corn Starting Week off with Losses
Corn futures are dropping lower so far, down by as much as 4 cents for nearby contracts. Trade ideas for US corn harvest are running 65-66% completed. USDA won’t release those numbers until Tuesday because of the Veteran’s Day holiday. The NASS Crop Production report from Friday showed 2019 corn yield at 167 bpa, pushing production down to 13.661 billion bushels. Expected US ending stocks were cut to 1.910 bbu. Exports, feed use and ethanol use were all reduced and offset most of the production cut. USDA bumped up the expected average cash corn price to $3.85. The world corn carryout was cut to 295.96 MMT. The Commitment of Traders report on Friday afternoon showed that managed money spec funds were still increasing their net short for Corn futures, growing that position to 104,846 contracts as of November 5.
Beans Stumble out of Weekend
Soybean futures are quite a bit lower after the weekend, dropping 12 1/2 to 13 1/2 cents at midday. Soybean meal is $4.10/ton lower to start the week. Bean oil is also lower, dropping 8 points at midday. Trade ideas for US harvest progress are in the 84-85% range for Tuesday’s weekly report. The NASS Crop Production report left the 2019 bean yield projection at 46.9 bpa and producers remained more optimistic than expected about harvesting acreage hit by snow in October. The USDA left production at 3.550 billion bushels. US ending stocks were projected at 475 bbu. World bean carryout was bumped up to 95.42 MMT. The Commitment of Traders report Friday afternoon showed that managed money’s net long position for soybean futures shrank by 19.2% in the week ending 11/5.
Wheat Lower at Midday
The three wheat markets are 2 to 5 cents lower this Veterans Day. Chicago SRW is down by 2 3/4 to 3 3/4 at midday. KC is fractionally lower to 2 cents lower, with Minneapolis down by as much as 4 cents in nearby contracts. The USDA cut harvested acres by 900,000 after the re-survey. The WASDE reported US ending stocks at 1.014 bbu on lower production. World Wheat ending stocks, however, were bumped up to 288.28 MMT. Australian and US production were cut, but other countries like the EU and Russia were increased. The CFTC commitment of traders report showed that managed money flipped their Chicago wheat position back to net short after a two week try at the bull side. They grew their net short for KC wheat, and haven’t been net long the entire calendar year. Also maintaining year-long consistency, managed money spec funds were still net short for MPLS wheat futures.
