|
South central kansas |
In terms of bean carry out, Tregg Cronin, makes a interesting comment concerning bean ending stocks.
Granted a few things have to happen, but in terms of ending stocks that would be bad.
“As we’ve discussed in recent weeks, the current USDA export forecast of 1.900bbu is down 160mbu from a year ago while Chinese imports are forecast down 147mbu. This would imply the USDA’s estimate has a fair amount of Chinese demand penciled in. If a trade deal is not done, and China can indeed forego US soybeans this season, there is no way we can reach 1.900bbu worth of exports. Our current pace implies something closer to 1.500bbu which current futures prices certainly do not have priced in. The caveat to this scenario is of course whether any trade deal has a guarantee of purchases of US soybeans which would impact Brazilian loadings Jan-Apr. Much to prove yet and this rally does not seem to be built on firm foundation just yet.”
| |
|
Lets take a look at the fundamentals of the big 3 going forward
