AM Comments 11/24/14
Monday, November 24, 2014, 7:11 AM
Submitted by: Dustin Weiner
It is the official start to the holiday season with our first short trading week thanks to the U.S. Thanksgiving Holiday this Thursday. These short holiday weeks normally bring reduced trade volume – which usually carries increased volatility with it. There wasn’t much for news over the weekend as weather forecasts remain mostly unchanged and are mostly favorable for both US harvest and SA planting. The farmer has slowed down the pace of selling recently with most traders feeling that selling won’t pick up again until closer to the end of the year (or shortly thereafter). This would mainly effect futures spreads and basis – not so much futures price direction.
The market was disappointed to learn Friday that the EPA announced they will delay the announcement of the RFS mandates until next year. The outside markets this morning look mixed at this time with crude oil trading lower while the $US is also lower and the stock market is called higher. Overall expect a slow week of trade with the soy complex starting out weaker today (taking back some gains from Friday’s strong upward move) while firming corn basis tries to lend the corn futures a little support.
Corn down 2 to 3 cents
Soybeans down 10 to 12 cents
Have a great day!