Lower overnight as weather and crop reports continue to point to an excellent crop. SA acreage is still in thought process and won’t begin in planting in earnest for 60 days. Still need to see some added acreage in Brazil and Arg. to keep world supply in good condition. The spreads are stuck with front end demand limiting a carry market to little or nothing and the back end ever so slowly taking out the inverse. Basis values still strong as crushers and exporters try to find enough stocks to finish the year and make it to NC. US acreage next year should be slanted to beans once again and we will need to watch what the ZC17/SX17 ratio does this winter. Currently, it is sitting at 2.5 which isn’t overtly bullish for bean acres. The market structure though is more of an issue than the actual S/D as current ratio for 16 is 3 which would possibly mean an increase to bean acreage that would level the acreage between beans and corn. Export demand for both will help determine this, but for now beans should get the nod. Look for mostly lower trade, but chance to sell positive numbers is likely.
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