Market Commentary  05/18/18 3:22:14 PM Printer Friendly VersionPrinter Friendly Version


Friday, May 18, 2018

CORN

Corn closed 7 cents higher today and was supported by both the announcement China was dropping anti-dumping duties against U.S. sorghum and firmness in wheat on dry weather concerns around the world. For the week CN gained 13 cents and CZ gained 6 cents. Buenos Aires Grain Exchange pegging corn production at 32 MMT (USDA 33 MMT) and interior estimates from Brazil for a 87 MMT corn crop (USDA 87 MMT) were supportive if not exactly a surprise. It does feel as though the trade is looking at the world balance sheet. Trade issues a mixed bag this week as NAFTA negotiations are bogging down on Trump’s desire to include immigration issues and ongoing work with China unsettled, though the trade obviously viewed the sorghum announcement as positive. Weekly corn export news positive with 61 mln. bu. in inspections and 39 mln. bu. in sales. Corn grind for ethanol in this week’s report at 110 mln. bu. well above the 102 mln. bu. a week needed to meet USDA projections.

BEANS

Soybeans closed 3½ cents higher in an interesting day of trade. Overnight gains attributed to China dropping sorghum anti-dumping duties raised hopes that soybean issues being resolved were to follow were seemingly offset by a raft of cancellations hitting the news after 8 AM this morning. The trade quickly discounted this news as “they weren’t going to happen anyway” and followed the grains higher. SN gained 4 cents this week and SX lost 6 cents. As mentioned, export news all in the “unknown category” (which the trade likes to read as China) had cancellations of 829 tmt for 17/18 and 120 tmt for 18/19. There was also sales announced of 56 tmt for 17/18 and 112 tmt for 18/19. Weekly inspections came in at 25 mln. bu. and sales were 10 mln. bu. On the world stage, Buenos Aries Grain Exchange estimates their soybean production at 36 MMT vs. USDA’s 39 MMT.
Wheat closed 20 cents higher today on dry weather issues in the U.S., Black Sea region, and Australia. Firmness linked to a lack of hedging/selling interest as much as to buying interest. For the week Chi WN gained 19 cents and KC WN gained 21 cents.
 
 
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