10:30 Market Direction:  Corn down 2;  Beans down 3

Grains and oilseeds start Wednesday mostly weaker on average volume.

Corn harvest continues to be behind average with yesterday’s numbers showing 66% complete, up 14 points on the week. Soybean harvest at 85% complete is nearly in line with averages.

Quiet weather affects U.S feedlots the next 7 to 10 days (or longer) as areas of high pressure leave a wide area dry.

South American weather is unchanged with t-storms over the next five days to be followed by wetter weather in central and northern Brazil, drying in southern Brazil, and scattered t-storms in 7 to 10 days in Argentina.

Brazilian corn exporters are enjoying a banner year thanks to a big crop and improved logistics, burnishing the country's status as a top global corn supplier and threatening the US' traditional dominance in the arena.  Some of that is due to this year's circumstances, but some of the gains could be more permanent. Through October, Brazil had exported 34.7 million tonnes of corn in 2019, a staggering 60% more than the prior record for the period. By comparison, the US exported about 36.2 million tonnes of the yellow grain during the same period, down 40% from a year earlier.  The US government projects that domestic corn exports will fall to a seven-year low, though some analysts fear that estimate may still be too optimistic. Brazil exports close to four times as much corn as it did a decade ago, with sales really taking off after a string of poor U.S. crops from 2010 to 2012.  Not all the two countries’ corn customers overlap, but many do, and the recent trends highlight the risks of the expanding South American supply to U.S. exports.

ADM does not expect to continue its aggressive strategy of acquisitions in the next few years and will instead focus on organic growth, a senior official said on Wednesday. "With this level of acquisitions we have had, I don't think you will see ADM being a very aggressive M&A investor over the next few years," Ismael Roig, Europe, Middle East and Africa President Archer Daniels Midland Co told the Global Grain conference in Geneva. He said the company would instead focus on optimizing its business, driving efficiency and look for opportunities in value-added sectors including nutrition.

Summary Items:

Grains slightly weaker.

Cold and wet weather prevails.

Brazilian 2019 Corn Exports Staggering.

Corn - $4.00 Spring    

Beans - $9.54 Spring