Corn: 1 to 2 Cents lower
Beans: 2 to 5 cents lower
The corn market rallied yesterday as traders continued to cover shorts. Corn is becoming overbought as the March contract pushed up towards the 100-day moving average. With the holidays only a week away, we may see traders hit the sidelines on recent gains. Historically, China is not a big buyer of U.S. grain so traders will need to see proof of details about the trade deal sometime soon. The market is trading lower this morning as the trade continues to watch to see if the funds cover their short position.
The bean rally yesterday was led by the bean oil market with reports of the return of the biodiesel blenders credit of $1/gal in the new spending bill. There was also news of a strong rally in Malaysian palm market, which lifted bean oil prices to the highest level in 2 years. Bean markets are trading lower this morning as it has met most of its upside objectives and become overbought.