MID-CO ,``` 1:15 PM AFTERNOON MARKET INFORMATION 1-800-322-9371 ILLINOIS 1-800-422-0896 IOWA Monday, October 27, 2014 CORN BEANS Corn traded near a one week low in the overnight session but was able to rebound and end the day a dime higher. Spillover strength from sharply firmer soybean futures combined with talk of slow farmer selling and thoughts that more money is flowing into the grains from the financials was seen as supportive. As of midday funds were estimated to have been net buyers of approximately 8,000 contracts of corn. This afternoon will bring updated harvest progress numbers. The anticipation is for roughly 45% of the U.S. corn crop to be harvested. Last week 31% was estimated to be complete. Light rainfall is expected to fall across the cornbelt later today and tomorrow. The weather then looks to be mostly favorable for harvest activity over the next two weeks. Weekly corn export inspections for the week ending October 23rd came in this morning at 27.7 mln. bu. Season to date export inspections are roughly 30% above year ago totals. The next USDA Supply/Demand report will be released on November 10th. Analyst estimates should begin to come out around November 3rd for that report. Basis Update: CIF corn was unchanged today as was most processor basis. Barge freight remains stout and there does appear to be more talk regarding rail car delays in the market. No new trades to report. Spread Update: Corn spreads were mostly unchanged. The CZ/CH closed at -13 ¾. Without an increase in cash movement this spread could continue to trade between -13 to -14. Despite November beans trading below their 50 day moving average in the overnight session, futures were able to rebound and end the day 28 ½ cents higher. A lack of follow through selling near session lows coupled with strong weekly export inspections and additional sales to China and an unknown destination were seen as supportive. Export inspections for the week ending October 23rd came in this morning at 80.7 mln. bu. Seasonally, this marks the high for U.S. bean exports and is near the record weekly pace set a year ago at 85.5 mln. bu. Season to date exports stand near 300 mln. bu. In addition, the USDA announced a sale of 220MT’s of beans to China and 100MT’s to an unknown destination. This afternoon will bring updated weekly harvest progress numbers. The anticipation is for the U.S. bean harvest to be approximately 75% complete. Last week the USDA estimated that 53% of the soybean crop had been harvested. Needed rain fell across the northern and central areas of Brazil over the weekend with more forecast across their growing areas this week and next. Roughly 16% of their crop is estimated to be planted. Argentina is at the beginning of their planting season with rain forecast for the middle of this week. Basis Update: CIF beans were weaker today while processor basis was mostly steady to a touch firmer. Slow farmer selling continues to support nearby bean basis. Meal basis is also finding support from rail logistical issues. No new trades to report. Spread Update: The SX/SF weakened a penny today to 6¾. First notice day for November futures is this Friday, October 31st. CZ 3.63 CH 3.76 ¾ CK 3.85 ½ Corn Spreads Settle CZ/CH CN 3.92 ¾ SX 10.06 SF 10.12 ¾ SH 10.19 ½ Change Soybean Spreads Settle Change -13 ¾ +0 SX/SF -6 ¾ -1 CZ/CK -22 ½ -¼ SX/SH -13 ½ -1 CZ/CN -29 ¾ +0 SF/SH -6¾ +0 Oct Nov Dec Wheat Spreads CIF Corn +68 Z +70/+74 Z +79 Z WZ/WH - 13 ¾ -½ CIF Beans +119 X +118 X +110 F WZ/WN -29 -½ IL River Freight % 900 825/700 625 Mid. Miss. 925 850/725 --- St. Louis SR 775 700/600 500 SK 10.25 ¾ The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by MID-CO COMMODITIES, INC. or GROWMARK, Inc. This report is provided for informational purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities herein named. This is not independent research and is provided as a service. As such, this is considered a solicitation.
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