Closing Comments; Tuesday, November 27th, 2018
MaxYield Cooperative - SETZ - Tue Nov 27, 1:32PM CST

The debate for next year’s acreage is underway, as corn seems to be bidding for an acreage increase. Even though the sudden increase in corn supply with China practically doubled the global corn carryout, trade seemed to shrug it off as any corn bushels in China will stay and will be used there. Industry consensus seems to agree that corn acres will increase relative to new crop prices offered. This new record carryout of soybeans has weighed on soybean futures. One aspect that trade often overlooks is USDA’s consistent over estimation of soybean stocks early on in the year. History shows this to be true, but this overestimation might not be enough to cut a considerable amount in the soybean carryout.

The Trump administration has ordered the EPA to use 15 billion gallons of renewable fuels this next coming year. This is a very highly contested debate as since the EPA has exempted small refineries from the mandate. According to the US Renewable Fuel standard program, smaller refineries can be apply for waivers from the annual requirements.

January soybeans finished the day up 13 cents at $8.75 . December corn closed down cent at $3.56 . December Chicago wheat finished down 10 cents at $4.97 .

For more information, you may contact Brock Beadle at 515-341-7040, or e-mail at bbeadle@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Brock Beadle. Data used in writing this commentary obtained from various sources believed to be accurate. This commentary is intended for informational purposes only and is not intended for developing specific commodity trading strategies. Any and all risk involved with commodity trading should be determined before establishing a futures position.




 

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