Market Update for Nov. 10, 2017

Ben Potter talks about factors impacting the market this week. (audio)

USDA WASDE

  • Corn came in really big – record-breaking big – at 175.4 bpa.
  • Soybeans unchanged at 49.5 bpa and the market did not like that. The market was expecting soybean production to be down. There were double-digit losses yesterday.
  • Wheat U.S. stocks went down slightly, helping to fuel two days of gains to end the week.

There were two large sales to start the week. Both for corn, both for delivery to “unknown.” 

Trade deals

  • Trans Pacific Partnership not going so great now that the U.S. is out. Canada is currently getting blamed for holding up the process. As it was conceived, TPP would have involved 40% of the world economy. The 11 remaining countries are still meeting.
  • NAFTA – A speaker at Agri Growth annual meeting this week gave it a 50/50 chance of survival. Deputy Agriculture Secretary Steve Censky said they want to improve on the pact for agriculture.
  • China – big deals in parallel to Trump’s Asia visit this week. Chinese importers say they’ll import another 440.9 million bushels of U.S. soybeans. That deal is worth around $5 billion.

Weather

Frigid through the weekend but if you look at the medium-range forecast, a lot of areas are looking to have drier-than-normal, warmer-than-normal temperatures 8 to 14 days out.

Next week

Crop Progress on Monday, NASS Farm Labor report Thursday

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