ADM Morning Grain Comments 11/20/17

Good Morning,

As of 7:10 AM

Corn: DEC17 -0’2 @ 342’6; MAR18 -0’6 @ 354’2

Beans: JAN18 -3’0 @ 987’4; MAR18 -3’0 @ 998’4

Wheat: DEC17 -3’6 @ 423’4

Crude: NOV17 +0.35 @ 56.32

November 20, 2017 by Steve Freed

Grains are lower. SH is down 4 cents and near 9.96. CH is down 1 cent and near 3.54. WH is down 4 cents

and near 4.39. US Dollar is higher but volatile on uncertain German politics. Crude is lower. Gold is lower.

Chinese Ag futures (January) were up 18 yuan in Soybeans, up 6 for Corn, up 27 in Soymeal, down 70 in

Soyoil, and down 50 in Palm Oil. The Malaysian Palm Oil market was down 84 ringgit at 2,630, basis

February, a 2 month low on poor export demand and news India to increase import taxes on vegoils.

Soybeans rallied Friday in part due to a drier Argentina and S Brazil weather outlook. Today’s forecast has

chances for rains over the next 15 days which could limit the upside in prices. Most est US 2017/18

soybean carryout near 460 vs USDA 425. Most look for lower exports. 2018/19 US soybean carryout est

near 500.

Corn rallied in part due a firmer domestic basis as US harvest nears the end. There were lo rumors that

China may have bought US corn. This have yet to be confirmed by commercials. Reports that China was

going to blend ethanol into their gas mixtures was in part to reduce domestic corn stocks and help

pollution. Most est US 2017/18 corn carryout near 2,435 vs USDA 2,487. Most look for higher ethanol.

2018/19 US corn carryout est near 2,190.

Brazil's 2017/18 soybean planting 73 pct complete vs 73 pct last year and 68 pct five-year average –

AgRural; says regular rains recently in most of Brazil allowed for soy and corn planting pace to grow.

Brazil's 2017/18 1st corn crop 63 pct planted vs 79 pct last year and 65 pct five-year average.

Funds bought 13,000 soybeans, 7,000 soymeal, 19,000 corn and 6,000 wheat and sold 1,000 soyoil on

Friday. Funds are estimated to be long 39,000 soybeans, long 12,000 soymeal, long 58,000 soyoil, short

217,000 corn and short 108,000 wheat.

Support Resistance

Mar Beans 990 1005

Mar Bean Oil 34.20 34.75

Mar Meal 318 325

Mar Corn 352 355

Mar CGO Wheat 435 445