We are pleased to announce, Mr. Dale Plumer will be starting as your General Manager on August the 17^th.  Dale has a long history in the grain business and was currently  Senior Merchandiser for Bunge-CFS Grain in Griggsville.  Prior to that he was regional manager for JBS United in Pittsfield IL.  Please welcome Dale when he starts here as your General Manager. 

August 12th, 2020

CORN

Corn futures closed 3 cents higher in a 7-cent trading range.  Funds were buyers of 3,000 contracts mid-day against an estimated short position of 167,000 contracts.  The S&D report today pegged yield at 181.8 bpa (record yield in 4 Midwest states: SD/MN/WI/MI) and production at 15.278 bln. bu., both record if realized. Despite the higher than expected yield/production, corn futures ended higher as selling failed to push futures dramatically lower. CZ touched $3.20 today, as it has twice before this month already, but bounced higher later in the session.  U.S. Export demand increased 75 mln. bu. to 2.225 bln. bu., Feed/Residual increased to 5.925 bln. bu. and Ethanol demand unchanged at 5.20 bln. bu.  20/21 ending stocks at 2.756 bln. bu.  19/20 ending stocks adjusted 20 mln. bu. lower to 2.228 bln. bu. as Exports were increased a like amount.  World corn balance sheets were mostly quiet for both 19/20 and 20/21 as Brazil/Argentina export levels were steady.  Weekly ethanol report showed a decline in estimated corn usage by 1.3 mln. bu. to 94.4 mln. bu. but stocks declined 595,000 barrels to the lowest level since 2016.  The trade continues to assess damage to the IA corn crop from Monday’s storm, with up to 10 mln. acres of cropland thought impacted.  Loss estimates 75 to 300 mln. bu. – probably aggressive on the high end.  Wheat a follower today and defensive on lack of news.  U.S. ending stocks are declining, though still ample, while world stocks climb. Basis 

SOYBEANS

Soybeans closed 9-12 cents higher with SQ leading the way.  Trading range was 16 cents in SX.  Funds were buyers of 4,000 contracts midsession to add to an estimated long position of 40,000 contracts.  Export sales of 258 tmt to China and 120 tmt to unknown kicked off the morning.  S&D report with yield at 53.3 bpa and production at 4.425 bln. bu. bearish on the surface but selling pressure did not materialize.  Fact demand still above production probably helpful.  Crush increased 20 mln. bu. to 2.180 bln. bu. and Exports increased 75 mln. bu. to 2.125 bln. bu. Ending stocks increased to 610 mln. bu.  19/20 ending stocks declined slightly to 615 mln. bu. – somewhat surprising the trade (slightly higher crush.)  Brazil/Argentine production unchanged in 19/20 and 20/21, but Brazil exports for 19/20 up 4.5 MMT (not surprising, though Brazil FOB offerings have rallied sharply and are now more expensive than U.S. into year-end.)  China 19/20 import projections increased 1 MMT to 98 MMT and 20/21 increased 3 MMT to 99 MMT - both record large.