PM Comments 12/11/2014
Thursday, December 11, 2014, 3:12 PM
Submitted by: Joel Pudenz
We couldn’t sustain early day rallies in both corn and beans but found enough strength to finish higher at the close in both markets. China will be allowing limited imports of U.S. DDGs (in small quantities, most estimate) and that was enough to push the corn market higher – even in the face of record low crude oil prices and a firmer dollar. There is a unusually wide discrepancy in USDA plantings estimates vs. FSA’s. If the difference isn’t much different after next week’s FSA report, most feel the USDA will need to adjust production estimates lower. Weekly export sales were a neutral input today for corn, coming within trade estimates. Livestock markets felt some pressure today: Feeder Cattle traded limit lower today, Live Cattle traded lower in deferred months. Soybean futures traded mixed but found enough strength to close a dime higher on the day. Carryover support from yesterday’s smaller carryout estimate was at odds with pressure from weaker-than-expected export numbers this morning.
Corn closed 3 to 4 cents higher
Soybeans closed 9 to 10 cents higher
Have a good night!