Corn: mixed to 1 lower
Beans: 4 to 6 higher
The corn market closed sharply lower yesterday on profit taking and on concerns that new Covid-19 restrictions will impact the country, and the world. Corn had also become overbought. However, as the fundamentals indicate, we should find support given any major setbacks. U.S. ethanol production came in at 287 million gallons, up from 283 million gallons last week, but was below the same week last year of 303 million gallons. Ethanol stocks increased to 847 million gallons, up from last week’s 826 million gallons. That is the largest single week increase in 3 months. Corn is trading steady to a bit lower this morning as the market consolidation continues and traders await new news. The combination of a strong cash market due to strong demand and South American weather concerns should continue to support the corn market as we move into the early winter months.
The soybean market pulled back yesterday as well, with increased farmer selling and some profit taking putting some downward pressure on prices. Soybean funds are estimated to be a record long 280,000 contracts (1.4 billion bushels). Export sales are expected to be solid this morning, but off a little with Brazil offering beans for March/April at a discount to the U.S. Values were higher overnight and into this morning as the market finds support with the fundamentals of U.S. supply.
Stay tuned later today for our week ending comments and the Bull Bear Banter podcast.