PM Comments 12/12/2014
Friday, December 12, 2014, 3:12 PM
Submitted by: Joel Pudenz
Whatever excitement we didn’t get earlier this week showed up today, particularly in the corn market. While crude continues its plunge and the dollar backs off its highs, corn found the strength to close nearly a dime higher. A couple rumors had the market on edge today, breaking corn prices out of our recent trading range to the upside. First was an unofficial announcement that China is expected to approve MIR 162 corn & by products for import. Second was a pre-anticipated (and larger than expected) decline in acreage numbers coming in Monday’s FSA report. Both pieces of news – if proven true – will have strong implications on the market. It will be interesting to see how the market reacts to the acreage report Monday in light of record yield reports & expectations from only 2 short months ago. Also something to chew on this weekend – how long can a corn rally be sustained with the current state of crude oil? Just some food for thought.
Roles changed today with corn taking the spotlight away from beans. Soybean futures traded fairly quietly, closing higher as we wait for the NOPA crush report on Monday. The market expects a record crush number for November eclipsing 165 mln bu. Money flow is propping commodity prices at the close of the week as it seeks a safe place to sit (the DOW is trading 300 points lower). Weather looks good in South America for this weekend and next week – all signs are pointing to strong performance out of Brazil and Argentina again this year.
Have a good night!