We have seen quite a rally in corn and beans lately. Going into the USDA October WASE Report corn was up another 4 cents and beans about 15 cents. The USDA cut corn ethanol demand by 50 million bushel which seemed reasonable. The last few weeks the corn grind for ethanol has been around 92 million bushel. Before the COVID-19 shutdown it was around 105 million bushel a week. The USDA cut feed demand which is hard to understand but that is what the USDA did.

The bean numbers were actually a little friendly. Quite simply the current year carryover drops to 296 million bushel. Last winter some of the bears were talking about a carryover of 1 billion bushels! Looking at the world bean carryover numbers the USDA made almost no changes? Brazil is still projected to produce an all time bean production record by a lot. Even though Brazil is very hot and dry and farmers are delaying bean planting.

 

 

Click on the link and listen to Gordy talk about the USDA October WASE report and the market action shorty after the numbers were released.

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