Ag Commentary

John WalshGrains

The markets are somewhat subdued. The harvest pace has been fairly swift. The weather through November looks beneficial, and harvest will continue to roll along. Those that look for harvest to put in a low will most likely attempt to start a bottom picking expedition that may help the market to bounce a bit. The yield reports have remained fairly consistent and to the positive side of the USDA estimates. The questions that are looming ? Will the US loose market share going forward, due to the southern hemisphere stocks. And, will the weather turn more positive for the farmers there. A couple thoughts. Given the exportable supply the US will loose market share. The carry over may be understated by as much as 80 million bushels. This would put the domestic carry at 500 million bu. The weather in SA is improving. The corn planting in Argentina is well behind the average due to moisture. Look for more bean acres if the forecast remains wet. This too will continue to add bushels to a already record global scenario. It is my contention that the board is overvalued. Just look at the basis levels. Any rallies are opportunities to sell

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