Market Update for Nov. 3, 2017

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

It was a good week for exports with six large sales reported to USDA this week - on Thursday and Friday. Also, strong results from USDA's weekly export report gave soybeans 8 cents. 

There was also bad export news from Brazil.

What’s happening in Brazil

This could be a deadly combination. First, the country’s currency has been weakening while the U.S. dollar has strengthened. That gives their crop a competitive price advantage.

Second, a record harvest in 2016/17 means Brazil actually has some stocks at this time of year. Normally, they don’t have much for exports by November.

That means 2017 Q4 exports to China could double, to about 183.7 million bushels. All of that is competing with the U.S.

Weather

There's a lot of temperature variability coming up, with highs this weekend ranging from the 30s to the 70s across the nation.

There will be ample precipitation over the next 5-7 days, especially in the eastern Corn Belt.

Next week 

Crop Progress report comes out Monday afternoon and will show how much corn harvest progress has been made.

On Thursday, the monthly WASDE report is issued.

 

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