Wednesday, Nov 14, 2018

US Sold 212kmt of Corn to MX and 148kmt of Beans to Unknown

Corn: Overnight volume of 47k and OI +17k. Crude oil stabilizes overnight. Lots of chatter about poor ethanol margins and rumors of which plants are slowing down. Vom chatter in the MI/Onatario continues. Farmer is not selling, dry mills need to cover a lot of Dec yet and cheap freight is chasing bushels. CZ/CH hanging around 11-cents carry. PNW Nov bid +93, FH Dec +100 and LH Dec +103. Taiwan bot an optional origin (BZL/US) corn vsl for Feb delivery, the seller and price was not disclosed.

Beans: Overnight vol 13k and OI +4k. REAL at 3.78. Still 12% or 10 mln acres of beans to be harvested. Processors are seeking JFM offers in the western belt. Brazil weather continues to be nearly ideal, with Arg outlook good too. SX goes off the board at noon today. China meal trade only 9kmt. Chinas top pig producer, Wens Foodstuffs said they will comply with China govt new lower protein feed guidelines for their pigs. US DOC is reopening the tariff case on Argy biodiesel imports into the US, 270 day process.

Wheat: Overnight SRW volume 13k and OI -7k. China sold 379kmt of wheat at auction and has sold 7.8 MMT YTD. Some are now suggesting KS HRW acres may at best only be steady from LY. At a min the talk of +10% is no longer out there implying those acres will be planted to something else this spring.

Financials: Crude +59c after yesterday's 7.1% drop, largest in 3 yrs. OPEC supposedly discussing at 1.4mbd cut in 2019. NG +7% yest as pipeline supplies are low heading into winter. Stock indexes are mostly higher. US $ -170 pts. Germanys economy shrank for the first time since ’15, GDP -.2%. Japan's GDP fell 1.2%. Italian officials continue to defy EU Commission’s request to lower spending and fines will be levied. Another fire broke out in CA, 44 people reportedly have died and 20 missing so far. PGE apparently had contacted people about sparks from their power lines only days before the fire broke out. Camp Fire is only 35% contained. Maryland has asked a fed judge to bar Matthew Whitaker from serving as AG. EU and Britain officials hammered out a draft Brexit deal. Amazon has 10k people working on its Alexa virtual assistant, twice the number of LY. Starbucks is laying off 5% of workforce, 350 people. Ford is partnering with Walmart and Postmates to test delivering groceries and pet food with self-driving vehicles. Waymo is saying they will launch their first self-driving car in Dec. Tyson stock fell 5.5% on weaker earnings outlook. Ukraine poultry prod to grow by 15% and exports 25% (350kmt) in ’19.