VINIMEX are pleased to update market news on October 29, 2020 as below 

Weather: Plenty of wet weather is expected to make its way across the lower Midwest later this week, with widespread areas gathering another 2” or more between Wednesday and Saturday, per the latest 72-hour cumulative precipitation map from NOAA. The agency predicts drier-than-normal weather will follow in its latest 8-to-14-day outlook, which also calls for seasonally warm weather for the central U.S. between November 3 and 9. 

General: A “risk off” mentality prevailed in the soybean and corn market today, pushing commodity contracts to sharp losses, with front months losing to deferred contracts. An increase in Covid-19 outbreaks in the U.S. and around the world and profit taking in front of next week’s elections ignited overnight selling which accelerated as the day wore on. 

SOYBEAN
Ahead of the Export Sales report, traders are expecting 1-2 MMT of soybean sales for the week ending 10/22. Soymeal sales are anticipated between 100-450k MT. BO bookings are expected to be between 5-40k MT. Official EU import data shows 4.47 MMT of beans were brought into the trade bloc from July 1 to October 25. That is a 4% increase from last year’s import pace. Indonesia’s Trade Ministry extended the 3% palm oil export tax through November of 2020 in an anticipated announcement  

CORN 

Increasing coronavirus cases are starting to cause concern about an economic slowdown, potentially hurting fuel use and ethanol. Ethanol futures were 0.20% lower at midday $1.54/gal. EIA data showed 941,000 barrels of ethanol produced per day on the week ending 10/23. That was 28k bpd above the previous week’s production. Ethanol stocks were also reported at 19.601 million barrels, which was a further 120k barrel drop wk/wk. Spot DDG prices were listed from $145 (W. IA) to $210/ton (KS) from the week ending 10/23. Analysts anticipate corn bookings in tomorrow’s Export Sales update to be between 0.7-1.5 MMT. USDA reported the 207,000 MT optional origin corn purchase from South Korea included U.S. as an origin.  

WHEAT 

NOAA’s 5-day QPF shows rain accumulation from OH to KS, with as much as 4” along the KS/OK boarder. Analysts are projecting USDA’s Export Sales report will show 200k to 700k MT of wheat sales last week. South Korea purchased 105,800 MT of wheat today, with 77.9k MT U.S. specific and the remaining 27.9k from Canada.  

PRICE MOVEMENT ON CBOT OCT 28