Closing Comments; Friday, November 9th, 2018

The DowDuPont cellulosic ethanol plant near Nevada, Iowa has been purchased by Verbio North America, a U.S. subsidiary of a German biofuels company. The plant has set idle since last fall when it no longer fit with Dow’s strategic plan. The new company, Verbio, plans to produce natural gas made from corn stover and other cellulosic crop residue. Construction is planned to start next spring & begin production by the summer of 2020.

Corn deficits in China are expected to hit 29.3 mmt, according to their ministry of Agriculture. This would be a significant increase from their previous estimate of 22.3 mmt. They are citing the use of corn in animal feed as the reason for the increase.

The market continues to digest yesterday’s supply and demand report, with the changing yields and looking at the corn and soybean carryout numbers. Along with the optimism of potential trade talks between the U.S. and China, with one of China’s top diplomats, Yang stated “China has committed itself to working with the U.S. in a non-confrontational way.”

December Corn ended the day down 3 cents at $3.69 . January Soybeans finished up 7 cents at $8.86 . December Chicago Wheat closed down 5 cents at $5.02.

For more information, you may contact Kristi Guse at (712)-260-6486, or e-mail at kguse@maxyieldgrain.com. The opinions and views expressed in this commentary are solely those of Kristi Guse. 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. Please visit our Risk Disclosure Page for more information on commodity trading.




 

Market Commentary provided by:

MaxYield Cooperative