New Census Chinese census figures jostled the world supply/demand figures……………live and learn!
Our next USDA report is on December 11 but, it is only Supply/Demand and some traders consider the December report to be the least important number of the year……………..The big one will be in January when the USDA throws the kitchen sink at us with winter wheat seeding, final crop production for corn and beans, supply/demand and stocks-in-all-positions as of December 31, 2018………………..
The market may start focusing on the end of the month and December deliveries……………………Basis levels for corn have had reasons to firm with harvest disruption yet slipped on freight rate drops hence, a wash!………………Present levels suggest that we’ll see healthy deliveries on November 30……………………..Wheat basis levels are firm enough to question if any of the Toledo stocks get delivered yet, we’re not high enough to negate the headaches of dealing with and sorting the receipts with acceptable vomitoxin levels………………..The market is keenly monitoring the Argentine and Australian crops as harvest approaches and progresses……………………….
Field loss is still a possibility with corn as Mother Nature is becoming more uncooperative with harvesting the final 10 to 20% of the crop……………..Too much rain is a double edged sword in the Plains as wheat acres wiped out are more than compensated for with better yield potential with what’s still standing……………………………
The November report is history!………………The surprises came in world figures as Chinese wheat production was increased 4 1/2 million metric tonnes and Chinese corn production was increased 31 million metric tonnes from the October projections……………………..As Gomer Pyle says “surprise. surprise!”
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Steve Bruce
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