This Week in Grain - November 2, 2018

1:41 PM 11/2/2018

Optimism towards trade negotiations upcoming at the G20 conference in Argentina on November 20, is forcing traders to short cover soybeans.  This came after President Trump tweeted optimistically on the upcoming meeting with President Xi of China.  Soybeans reacted sharply higher based on the tweet alone.  But China has indicated that the idea of a deal being close is not true and many negotiations have to take place in order for a solution.  The poor pace of exports on beans to this point equates to lost time, as we grow closer to Brazil having another crop and Argentina should increase production after a dismal year last growing season.  China is losing hogs to disease and they are moving forward with plans to lower protein content in feed.  

On the United States side, FC Stone lowered their corn yield estimates from 182.7 to 181.4 bushels per acre, and they also lowered soybean yields from 54.0 to 53.2 bushels per acre.  They cited issues in Minnesota and South Dakota as the primary reason.  

Wheat exports are strong.

Jim Gallagher

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