Closing Remarks

January 11, 2018

Provided by Matt Lukac, Sunrise Grain Solutions Advisor

Corn: Slightly negative as December 1 corn stocks came in 87 million above the trade
average. Production was 26 million higher, and the two combined to contribute to a 25
million bushel reduction in the USDA feed/residual forecast.  The final corn yield
estimate came in at 176.4bpa up 1.2 from the last report. Non ethanol FSI use was
increased 10 to 1.179 billion and the net of the above was a 40 million bushel increase
in expected carry-out to 2.477 billion, which will likely to keep a cap on the upside
unless the market becomes jittery over South American production prospects and
export demand begins to pick up in a noticeable way.

Soybeans: Production was reduced 33 million; exports were cut back 65 million and
crush was raised by 10 to 1.950 billion. The smaller production figure and modest boost
in crush took some of the sting out of the ending stocks forecast, up 25 million to 470
million. The Argentine crop was reduced 1 to 56.0 while Brazil went up 2 to 110.0. Bias
here is that soybeans still have some more downside.
Wheat: Winter wheat seedings at 32.6 million acres were 1.1 million above the average
trade guess AND, exceeded even the high end of the trade range. December 1 stocks
which were 23 million higher the trade adds to the negative sentiment.
Thank you to Advance Trading for the USDA report update.

Thank you for your Business !