PM Comments 11/21/2014
Friday, November 21, 2014, 4:11 PM
Submitted by: Joel Pudenz
Corn futures traded higher most of today’s session before falling under selling pressure during the last minute (over 25,000 contracts traded during the last 60 seconds). We were going to close even on the week, but the last minute liquidation pushed us to close 9 cents lower than last Friday’s settle. Even in a week that contained relatively strong ethanol usage and better-than-expected export numbers, we were unable to close net positive. Both corn and soybeans may be experiencing some technical pressure in the next few trading days – a head and shoulders pattern appears to be forming in both markets. The EPA announced that it will be delaying any announcement of bio-fuel targets until next year, which had a mixed/minimal impact on the trade. In outside markets, the dollar, DOW, and crude oil all posted good gains today on news of China lowering interest rates to spur economic growth. Couple this with a strong performance in soybean meal, and it’s easy to see the 18 cent gain soybeans posted today. Good (but slow) planting progress in South America has the market’s attention; weather appears to be favorable, but lots of eyes are watching for any additional planting delays to develop.
Corn closed steady to a penny lower
Soybeans closed 17 to 18 cents higher
Have a good weekend!