Written Commentary
Corn futures are limit up. Soybeans, soymeal and wheat are sharply higher. Most of the higher price action is due to the fact USDA dropped the 2020 corn drop to 14,182 from 14,507 and yield to 172.0 from 175.8.
USDA dropped US corn carryout to 1,552 but also dropped demand. We are not slowing demand yet and some are using a carryout now closer to 1,250.
USDA raised China corn imports to 17.5.USDA also dropped US soybean carryout to 140 mil bu from 175. They raised exports 30 and crush 5. Some feel demand could be higher.
USDA failed to drop Brazil soybean crop but did lower Argentina. USDA left China imports at 100 mmt.
Wheat rallied on talk of Russia doubling their wheat export tax and fact Egypt passed on the wheat tender.
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