Another Rough Week for Corn and Beans
It was another typical week with corn prices under pressure. Many, myself included were holding out hope that Friday's USDA Supply Demand Report would be at least friendly or maybe even bullish. Well, the USDA again made some rather bearish assumptions cutting ethanol demand by 25 million bushel and exports by 75 million. The result was carryover increased by 100 million bushel. A month ago the USDA dropped the national average corn yield and offset that with decreased demand!
The story was not any better for soybeans as new crop November saw the lowest weekly close since last fall on Friday. The USDA did not make any big changes to soybeans dropping U.S. carryover by 10 million bushel to 900 million. The world carryover increased about half a million metric ton to 107.17. On Friday the USDA announced a daily export sale of 664,000 metric ton of soybeans was sold to China.
Remember last June when the trade war with China began the USDA assumed we would not be selling any beans to China? The USDA increased the U.S. carryover from around 500 million bushel to 950. We have been selling a lot of beans to China since then even with the trade war but the USDA has dropped the U.S. projected carryover very little!