Beans: 4 to 5 cents lower
The March corn contract failed to take out the 100-day moving average yesterday, at $3.90, causing the market to retreat and put an end to the fund short covering. The Chinese have made no promises on whether corn will be included in the trade deal or not, so the trade is still paying close attention to that. Last week, U.S. ethanol production slipped 2 million gallons from the previous week. Corn was trading lower this morning as Chinese buying has not changed much with overall exports sales lagging and there are no production problems in South America.
Soybeans have lost a bit of support as the soy complex had been led higher by the bean oil market—and that market appeared to run out of steam yesterday. USDA’s weekly export sales report is out this morning so the trade is looking for another solid week of sales. Markets are trading lower today as the market has met most of its upside objectives and has become overbought. There are still some possibilities of big sales to China and S. America weather problems. And, January’s USDA report could also show the 2019 crop not as good as previous WASDE reports estimated.