PM Comments 11/10/2014
Monday, November 10, 2014, 4:11 PM
Submitted by: Joel Pudenz
The USDA report held a few surprises, but was overall neutral to the corn market. Corn yield dropped a touch, adding some limited support to a range-bound market. The previous high for the move in December futures was on October 30th of $3.81. We failed to trade there again today. The USDA increased corn usage a meagre 5 million bushels, indicating continued mediocre interest for corn (as compared to production – stocks to use was 14.7%). At the close, corn futures settled 1 to 2 cents higher.
After the report was released, it felt like someone flipped a switch on the soybean market; it went from being as much as 22 cents higher to settling 9 to 11 cents lower. Export inspections this morning were strong at 91.2 million bushels, the second highest on record (the highest on record was last week at 102 mln bu.) and that added support this morning. The USDA report increased production by 31 million bushels on a record yield of 47.5 bu/acre, but didn’t contain much of the new fundamental news some in the market expected (changes to acres, yield, or ending stocks). The lack of news and increased production caused the market to sputter out and turn lower.
Have a good night!