*** Today’s session will open at 8:30 and close at Noon***
On Wednesday, corn and soybeans both closed lower, with March corn futures down 5 and January beans off more than 7.
For corn, the weekly EIA report showed ethanol production increase to 291 million gallons last week, up 8 million gallons from the previous week, and the highest weekly output in 35 weeks. It still lagged production from the same week last year by 20 million gallons. Ethanol stocks also increased by more than 25 million gallons as gasoline usage dropped to a 23 week low, using 45 million gallons less per day than a year ago. We should expect a report for this week showing even worse gasoline usage as compared to last year’s Thanksgiving week.
For the soy complex, there was excitement early in the session when December meal pushed up above $400 to almost $402.50/ton, up more than $4 at one point. However by the end of the session, meal closed lower for the day, finishing below $397. Soy oil actually finished the day a little higher Wednesday, but ended the day more than 100 points lower than the high set last Friday at 39.09 cents/pound. January bean futures closed at $11.84. They hit their high last Friday as well, when they briefly touched $12.
Corn steady to 1 lower
Beans 1 to 2 lower
We expect a fairly low volume day across the board, not only due to shortened hours, but also many traders taking the day off.
Later today, we’ll release this week’s episode of the Bull Bear Banter, where we discuss the positives and negatives of the corn and soybean markets.