Feed Ingredients Report: Week Ending Oct. 26, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Oct. 22, 2018	3.68	8.50	5.02
Oct. 15, 2018	3.73	8.76	5.19
Oct. 8, 2018	3.67	8.62	5.13
Oct. 1, 2018	3.67	8.62	5.17

• The 25% tariff on U.S. soybeans appears to have morphed into a boycott. Companies presumed there would be no imports of U.S. soybeans in the fourth quarter of 2018. There was no consideration that they might buy if the price is right – even though U.S. soybeans with a 25% tariff are cheaper than Brazilian or Chinese soybeans at present.
• Greg Doud, Chief Agricultural Negotiator for the USTR, says the dispute over U.S. soybeans, ethanol, finished meats, and other value-added ag products will take a very long time to resolve – due to the intellectual capital issues that previous U.S. Presidents have ignored, but President Trump is determined to confront head-on.
• Ample meal available globally and is evidenced by eroding South American meal premiums and historically low domestic U.S. meal premiums (board crush margins retreating).
• Corn crop harvesting progress increased to 49% harvested, on the five-year average of 47%.
• Soybean crop harvesting progress increased to 53% harvested, behind the five-year average of 69%.
• Crop progress showed 72% of the winter wheat crop is planted now, below the five-year average of 77%.
• Farmers and grain elevators, particularly in the upper Midwest, are struggling to find alternative markets for soybeans and space to store this year’s crop, which the USDA projects will set a record.
• Many elevators are preparing to dump three story-high piles of grain on the ground to make room for soybeans in bins. Soybeans can rot if not dried properly, a growing fear in North Dakota, where a recent snow blanketed crops and delayed the fall harvest.