RABOBANK: US COULD STILL SEE TOP CORN CROP
While the US will not set yield records in corn this season, far better results than initially anticipated could still make it a top-two or top-three crop, according to Rabobank’s North American Agribusiness Review. US corn exports are estimated to increase 22%, equivalent to 10 million tonnes, according to USDA. USDA is projecting a 3.3 million tonnes increase in corn use for ethanol, but the US Department of Energy is projecting a 2% decrease in ethanol output. Rabobank added that even the modest increase of 1.4 million tonnes in feed demand may be difficult to attain given flat poultry production.
Compared to corn, there is very little room for soybean yields to surprise to the upside, Rabobank said. Brazil will likely loom large again in the year ahead, it said, with record yields and record production. Better yields are driving production increases for most classes of wheat, including hard red winter, hard red spring, soft red winter, and durum wheat. The exception was white wheat, which showed a decline in yields and area harvested Rabobank said. US imports are continuing at a record pace, projected to be the fourth-largest import volume over the last 20 years.
(Link: WorldGrain)
FUNDS’ CBOT SOYMEAL LONG SURGES ON STRONG US EXPORT DEMAND
In the week ended Oct. 24, money managers expanded their net long position in CBOT soybean meal futures and options to 92,027 contracts from 50,698 a week earlier, establishing their most bullish meal stance in six months. Most-active CBOT soymeal futures jumped 8.6% in the week ended Oct. 24 on increasing international demand for U.S. soybean meal, tightening up the domestic market.
Most-active CBOT corn futures shed 1% in the week ended Oct. 24, trimming net short to 100,430 contracts from 108,870 a week earlier. CBOT wheat rose almost 2% for the week, and money managers cut their net short to 92,254 futures and options contracts from 104,407 in the prior week. CBOT corn fell 0.7% in the last three sessions, CBOT wheat dipped 0.9%, K.C. wheat lost 3% and Minneapolis wheat fell 1%.
(Link: Reuters)
