Grain Tidbits - October 16, 2018

11:19 AM 10/12/2018

USDA reported lower than expected yields on corn and soybeans in their monthly report.  Values on these commodities reacted positively on Thursday of this week.  Friday's markets thus far are continuing to show positive values.  Some read this as end users trying to cover some of their needs at bargain prices.  There is  concern about quality of crops remaining in the field after this extended wet period. Large portions of the Central and Southern Plains received greater than 4 inches of rain.  There is talk that rains were heavy enough to force replanting in a large section of the winter wheat belt.  Wheat prices have reacted favorably.

The report seemed to catch traders off guard. To see lower yields and production going forward isn't common.  The western Corn Belt has seen monthly rain totals above 10 inches in some portions.  Corn export shipments were the 8th largest on record and largest for the current period.

President Trump and President XI Jinping are looking more likely to meet at a G20 meeting next month in Buenos Aires to discuss trade between the US and China.  Conflicting news was heard on whether or not the two would meet as the trade war between the two nations continues to intensify.

Wet areas are going to need some time to dry out.  Weather conditions are expected to improve considerably next week. Hope to see combines rolling again soon. 

Jim Gallagher
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