As expected, China was a huge buyer of soybeans (78% of wkly total), but this buying was behind the recent strength limiting follow-thru gains today.
Reports of China possibly retreating from the world corn export markets in 2004, which we noted as a possibility in our recent feedgrain outlook because of declining internal stocks and a smaller 2003 crop, has been corn's supportive factor this week.
However, continuing reports of excellent US yields keeps us concerned that this year's crop could rise another 150 mil bu from the current 10.2 billion level on the USDA's Nov 12th update keeping US ending stocks adequate.
Because of these factors, we still recommend 2003 beans and corn sales to 75% & 50%, respectively, at current levels.
