Morning Comments December 6, 2017

Opening Calls:

Corn steady to +1

Beans up +3 to +4

 

Yesterday, December Corn closed 1/4 higher @ 3.39 1/4 while January soybeans closed 10 higher @ 10.08 1/2. Grain markets a touch firmer again today, corn up a penny and soybeans up 3 to 4, with traders still keeping a close eye on South American weather models. Yesterday’s rally was also supported by active funds in the market, with buyers of an estimated 9,000 contracts of beans and 3,000 contracts of corn. The EU released a long-range weather model yesterday, showing La Nina to last through mid-winter (some even show a La Nina lasting into the spring), and limiting rain chances enough to keep the grain markets nervous.

 

Informa lowered its corn and bean production estimates for Brazil yesterday. They lowered bean production by 1 MMT (now sitting at 110 MMT), and lowered corn production by 3 MMT (now sitting at 89 MMT).