Early Market Talk October 31, 2019

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Weather concerns and China noise supporting corn yesterday but not so much overnight. CZ19 giving back much of yesterday’s gains trading $0.03 lower this morning at $3.87 ¾. SX19 off $0.01 ½ at $9.14 ½ with heavier than expected deliveries.

Dow futures off 85 points this morning trading 27,044. Crude off $0.41 at $54.65. US $ Index sharply lower.

Deliveries against SX19 heavier than expected at 1,659 with some late registrations. Surprising delivery date is current through yesterday. No surprise lions share of beans came out of Chicago.

CZCN making a big move yesterday tightening $0.02 ¾ on a 4 cent CZ19 rally. Sign of changing playing field or thin trade. Bias is pressure on CZ19 yet to come?

FCStone Yield / Production survey tomorrow. APEC summit scheduled for November in Chile has been scrapped. Continued riots and civil unrest called into question safety.

Weather models in better agreement for more normal rains to develop in central Brazil soybean growing regions. USDA had Brazil soy prod at 123 mmt (4.52 bln bu.) this year up 5 mmt from a year ago. If achieved Brazil soy production would be nearly a billion bu larger than current US production forecast!

Export sales later this morning. Corn sales expected under 800K and soybeans no more than 1 mmt. Rangebound random walk in grains continue……

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