Feed Ingredients Report: Week Ending Oct. 5, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Oct. 1, 2018	3.67	8.62	5.17
Sep. 24, 2018	3.62	8.47	5.17
Sep. 17, 2018	3.49	8.33	5.17
Sep. 10, 2018	3.58	8.36	5.12

• The United States and Canada have agreed to replace the North American Free Trade Agreement (NAFTA) with Canada joining the U.S. and Mexico to a renegotiated deal in the United States-Mexico-Canada Agreement (USMCA). The markets took this as a welcome sign of relaxing some of the trade tensions caused by the Trump administration.
• Seasonal demand for U.S. corn is expected to reach record levels in 2018-2019 –a bullish long-term factor for the corn market. Furthermore, with a renegotiated NAFTA confirmed this week, there is renewed confidence over more U.S.-China trade talks.
• U.S. Ag Secretary Sonny Perdue made comments Thursday that the U.S. had become too trade dependent on China and would be wise to diversify with new trade deals elsewhere. China and other countries not sitting idly by, as they too are exploring other deals.
• Corn export demand appears solid, with strong weekly export inspections taking the season total up 47% YOY. Gulf corn is the cheapest origin globally, undercutting Black Sea and South American offers, which should continue to draw strong demand.
• Export sales were once again strong this week, even without China, as more European buyers are coming to the U.S. for grain purchases. Wheat sales were down at 16 million bushels, corn sales were strong at 56 million bushels and soybean sales were also strong at 56 million bushels. YTD, wheat sales are down 19.3%, corn sales are up 62.9%, soybean sales are down 13.2%, meal sales are up 22.6% and oil sales are down 5.2%.
• Producers continue to wait for fields to dry out with excessive rainfall the last few weeks across much of the U.S. The country reports quality issues continue to be found, especially in early maturity soybeans grown in the South.

Weekly Spotlight

Heavy, above normal rainfall across the Midwest and South the last two weeks are causing harvest delays and quality issues in soybeans.