Market Signals Weekly Report
The following are comments and discussion items from the weekly conference call of the Market Signals Team.
Discussion Items :
- There are no new Market Signals cash recommendations.
- Corn harvest is at 89% completed versus the five year average of 98%.
- Corn futures trying to find support on strong cash basis and lack deliveries against the December futures contract.
- U.S. export sales for corn are 45% of last year, shipments only 55% with USDA goal being down 10% from last year. Export demand is below expectations on corn.
- Corn is in tight supply in Brazil with exports expected to be at a record high.
- Soybeans harvested is at 96% compared to 99% for the last 5 years.
- U.S. Soybeans export sales are up 5% from last year, shipments up 14% with USDA goal up 2% which is bullish news for soybeans.
- In South America, weather has been adequate for the crop. Planting was delayed due to dry conditions but now is slightly behind normal.
- Brazil soybeans are 89% planted and Argentina is 32%.
- Chicago Wheat has made a 40 cent rally since the middle of November.
- Australia has dry weather and France is currently too wet.
- Less acres of wheat planted, lack of deliveries against December futures contract and strong basis is leading futures higher.