Headlines:

  • Daylight Savings Time ends November 6th
  • USDA Supply and Demand Report & Crop Production Estimates scheduled for November 9th
  • Weather patterns in the U.S. remain mostly favorable for the remaining corn and soybeans harvest. Winter wheat conditions are not expected to be negatively affected by short term weather patterns
  • Brazilian soy sowings forge ahead, but corn could get the benefits
    Farmers in Brazil’s agricultural heartland are sowing soybeans at a sizzling pace this year. But corn, rather than soybean, could see the benefit. According to the Brazilian currency AgRural, 2016-17 soybean crop is now 41% planted, compared to 31% last year. And in the Central South region, the pace is even faster. The Mato Grosso Institute of Rural Economics sees soybean planting in the top-growing state 67% complete, compared to just 38% last year, the fastest pace on record.

 

Summary:

A trove of information from the FBI, congress (via the Freedom of Information Act) and Wikileaks has reinvigorated the Trump campaign. The narrative has now shifted in favor of Donald Trump’s presidential election run and with the recent news there has been some volatility in the markets in general. Equity market were down yesterday and today and the US Dollar has also been trading well off of its recent highs over the past few days. Corn and Soybean futures were not immune today. At the close, December Corn was down 2.25 points and March Corn gave up 2 points. January Beans added to yesterday’s weakness giving up 6.50 points and March Beans gave up 6.75 points. We are one week away from the USDA Supply and Demand report and it would seem that traders are not taking big chances by taking advantage of some profit-taking ahead of the report. Reports of favorable weather in both the US and in South America has been leading to speculation that crop production will be abundant. Demand from China has also been coming in below estimates. Without ample demand, price support might be challenging. Wheat futures managed to close in positive territory which is consistent with cycle projections calling for stronger prices in the month of November. We anticipate that traders will be watching the upcoming jobs report on Friday, the Presidential election on Tuesday (and the unprecedented scandals along the way) and WASDE Report next week.

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