AM Comments 11/20/14
Thursday, November 20, 2014, 8:11 AM
Submitted by: Dustin Weiner
Markets for the most part have traded mixed overnight, although they feel a little firmer as we head towards the opening. Corn has been lower for 4 consecutive days and soybeans have lost 30c just in the past two days – so maybe these markets are a touch oversold and could recover a bit today. However, with the recent technical damage done to the charts – it appears that any corrections higher could be met head on with addition spec selling interest.
The export sales report was out this morning and it shows improving demand for corn (much needed!!) and some slightly disappointing soybean sales. Also of note… many in the trade are passing on rumors that the EPA could be announcing their 2014/15 renewable fuel mandates soon – which may offer some support for corn prices. Remember, last year they issued a mandate of 13.2 billion gallons (versus the 14.4 billion gallon mandate from the ’07 energy bill). This year it seems like most in the trade are expecting something between a 13.5 and 13.9 billion gallon mandate will be established.
Corn 2 to 3 cents higher
Soybeans 1 to 3 cents higher
Have a great day!