Marketing Partners Advisory: Weekly Conference Call Recap

The following are comments and discussion items from the weekly conference call of the recommendations group of Marketing Partners Advisory.

Discussion Items :

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  • No new cash recommendations.
  • Harvest progress is slow especially in the north and western parts of the corn belt.
  • Higher Global supply and demand continues to be evident with latest USDA report.
  • Margins for Corn Ethanol and Soybean Crush were both lower for the week. This could lead to less demand in the U.S. longer term if margins continue to fade.
  • Highlights from USDA Supply and Demand Report released on Nov 8th.
    • Corn and Soybean yields reduced further than the trade had expected.
    • U.S. Corn yield reduced from 180.7 in October to 178.9 November.
    • U.S. Soybean yield reduced from 53.1 in October to 52.1 November.
    • World Corn carryout dramatically increased due to China stocks being revised, but appears to be factored as neutral to the trade.
  • Harvest is slow in the north due to weather delays and crop quality. Besides the challenge of snow, rain and lack of sunshine, some areas have corn severely lodged.
  • Nebraska corn yields good. Indiana late-harvest corn yields suffering due to lodging and loss of ears.
  • Several bushels of corn and soybeans stored on the farm including more temporary storage bags than last year.
  • Soft Red Winter Wheat basis improving quickly for export.