The Plains will remain mostly dry and chilly through the next 7-10 days.  Widespread rain expected for the SRW wheat in the Delta and Eastern Corn Belt over the weekend.  In South America, a seasonable yet wetter pattern will affect much of the corn and bean areas in Argentina, Brazil, and Paraguay the next 10 days.  They should  improve or at least maintain soil moisture while slowing planting slightly.   Storms will move across the key corn and soybean areas of Argentina through Thursday.  After that, dry and very warm/hot temps should follow.

St Louis river levels DROPPING at +6.4 ft  and forecast to be 3.9 by 11/23.  Good news is that we have a pretty decent chance for some accumulation Fri – Mon which should help the low water levels.  Mile Marker 632 – 635 CLOSED Fri 11/7 to daylight traffic for up to 14 days.  The Army Corps of Engineers is doing a matting project which was postponed until Dec but is now going forward.  This could be a giant wrinkle in an already taxed freight system during a record harvest.  It will slow loads moving south and empties moving north and cost a full tow as much as a 75 mile setback. The Upper Miss will start closing early this week and the Mid Miss the following week (this is a week earlier than normal due to low water and the Polar Vortex).  As the export transportation pipeline shrinks, it stresses the lower system to perform.


DOWN 5         

Harvest progress moved AHEAD of average yesterday afternoon (see below) and export demand is not exactly over-whelming.  Some could argue that a 2.2 bbu C/O is on the horizon.  Yesterday’s Export Inspections were very disappointing at only 15.8 mbu.  This was well below expectations of 26-33 and 35.2 per week needed.   Sales NEED to be 30 million+ per week going forward. Improving Brazil corn prices could raise area planted to corn according to private sources.  The Univ of MO raised their average corn price forecast, up 10 cents to $3.50 per bushel with NEXT year’s new crop 15/16 $.15 higher at $3.89. Safras indicates that Brazil is 76% planted compared to 92% last year. 

 The market has moved nearly 50 cents higher during October on no real change in fundamentals.    Don’t allow Fund buying to make you too bullish, preventing you from making PROFITABLE sales.  Look to improve upon existing sales.  (Lock in  these higher CA$H values for Dec, Jan, Feb, & Mar). This is a great time to make up for not having much sold prior to harvest!  Have offers in to take advantage of a higher board, should one materialize.

Monday’s Crop Progress report   US HARVESTED 89% TW, 80% LW, 90% LY%, and 88% AVG.  The State of IL HARVESTED 94% TW, 87% LW, 95% LY, and 89% AVG.



DOWN 12    

FUND SELLING!  More data confirms that several more bean meal vessels are being switched from US origins to that of SOUTH AMERICA.  Additional export demand is still needed and with the market not terribly concerned about South American weather, prices are defensive accordingly.  US bean harvest made additional progress, only 2% behind avg (see below).  The USDA reported a 100,607 MT sale to Unknown for 141/5 delivery this morning.  According to AgRural, Brazil planting gained 17 points to 63%, now only 6 points off the 2013 pace.  The Univ of MO expects this year’s average bean price forecast up a nickel at $10/bu and new crop  15/16 bean acreage unchanged.  The average price for the new crop 15/16 is up nearly 20 cents from last month to $9.10.  South American Meal is now MUCH cheaper than that of the US.  Informa’s new crop acreage was trimmed to 210K acres.

Monday’s   US BEANS HARVESTED 94% TW, 90%LW, 94% LY, and 96% AVG.  IL HARVESTED 95% THIS WEEK, 91% LW, 98% LY 97% AVG.




Wheat ratings held steady at 60% and planting edged ahead (see below).  The weather outlook sees less chance of extreme cold in the Plains the next 7-10 days while bringing ample rain to U.S. SRW areas.  Ukraine winter wheat reaches 6.4 million ha, 4% more than expected and all winter grains sowing is now 2% complete.  The good/satisfactory ratings are approx 83% of the total area.    Yesterday’s Export Inspections were weaker at only 5.1 million. Expectations were 9-14.   This week’s total was short of the 18 per week implied rate.  The French soft wheat crop is looking good with 84% of the Soft Wheat crop emerged, up 15 points from LW and 12 points ahead of last year.   94% is in G/E condition, down one from LW, but 8 higher than a year ago.  

Monday’s Crop Conditions Report had US Winter Wheat CONDITIONS  60% G/E THIS WEEK,  60% LW, and 63% LY.  STATE OF IL CONDITIONS 57% G/E this week, and 60% LW. US WINTER WHEAT PLANTED 95% TW, 93% LW, 99% LY, and 97% AVG.  THE STATE OF IL WINTER WHEAT PLANTED 90% TW, 84% LW, 100% LY, and 95% AVG.  US WINTER WHEAT EMERGED 87% TW, 83% LW, 88% LY, and 84% AVG.  THE STATE OF IL EMERGED 64% TW, 52% LW, 85% LY, and 81%AVG.