Serving our customers since 1895! Celebrating our 125th Anniversary
Open until 7:00 today, Friday, Oct. 30th
2020 Fall Policy is available! (Click on 2020 Fall Policy in left hand margin)
CBOT Daily Limits effective 11-1-20: Corn: 25 cents (no change form current limit) Beans: 70 cents (+10 cents from current limit) Wheat: 40 cents (no change from current limit)
Coronavirus Update Our priority is to keep our employees and customers healthy and safe at all times. Because of this our office will be closed to the public until further notice. We also ask that the drivers stay in their truck or tractor while unloading grain in the elevator during harvest .
Thank you for your cooperation.
Brad
Friday Afternoon Comments-Oct 30th Corn closed steady in CZ and 2-4 cents better in the deferred months. Funds were sellers of 4,000 contracts at mid-session and held an estimated long position of 186,000 contracts to start the day. Oddly enough, the overnight session was deemed busier than the day session today. October’s been quite a month as corn futures finally found some selling pressure in the last week. CZ fell 21 cents this week but gained 19 cents this month. The rally during harvest allowed producer selling activity to be much stronger than expected. At month’s end, the market must contend with the threat that COVID increasing could hamper economic activity/ethanol production/corn usage against strong export demand/imperfect S. American weather/reductions in U.S. yield projections. Regarding exports, USDA continues to show China importing 7 MMT of corn and the U.S. has currently sold 10.5 MMT of corn to China. Also, it is rumored China is buying U.S. ethanol and DDGS. Plenty to keep traders interested in the months ahead. Next S&D report in 11/10.
Soybeans closed 5-8 cents higher in a 15-cent trading range, and since they couldn’t pick a direction, they closed in the middle of the range. For the week, SX fell 28 cents but gained 33 cents this month. Funds were buyers of 3,000 contracts at mid-day to add to an estimated long position of 222,000 contracts. Soybeans were under the same general selling pressure as experienced in grains, energies, and equities. Lack of Chinese purchase announcements this week was negative, but a sale of 121.5 tmt of soybeans to unknown was reported this morning. Brazil’s main soybean state of Mato Grosso is 54% planted vs. 81% last year. Southern Brazil is too dry (along with Argentina) while northern Brazil is wet. Mato Grosso splitting the difference with the southern end dry and northern end in better shape. Brazil bean harvest currently estimated 10+/- days behind average. As we begin a new trading month, the same issues will be in play: Chinese demand for U.S./S. American origin and S. American weather, with a bit of yield uncertainty in the U.S. thrown in for good measure.
Wheat off 3-5 cents today in sympathy with corn/beans. Dry weather in southern Russia lending support. WZ fell 35 cents this week but gained 20 cents this month. Funds continue to hold around 30,000 contracts on the long side.
7-day expected precip:
6-10 DAY FORECAST (TEMP/PRECIP) The ballot is stronger than the bullet. Abraham Lincoln
Stanford Grain Company
