Morning Comments January 11, 2017
Wednesday, January 11, 2017, 2:01 PM
Submitted by: Landus Cooperative
Corn futures closed on Tuesday weaker with March corn finishing 1 ¾ cents down and December a penny lower. Seems to be finding resistance at the $3.60-$3.62 mark. Lower crude and the higher dollar weren't favorable to corn on Tuesday’s trade, but healthy export demand is helping support corn futures – another large sale was announced yesterday morning. The EIA ethanol weekly report comes out today and expects to see a strong week again (due to strong ethanol margins).
Soybeans found some upward movement again on Tuesday’s session. They picked up 8 ½ cents on the March and 6 ¼ cents on the Nov. It seems that they found strength from concerns over Argentina’s wet weather. The USDA has Argentina’s production currently at 57 MMT and private estimates are more in the 53-54 MMT. Commodity funds bought 4,000 contracts of beans yesterday. Brazil’s CONAB upped production estimates – to an already record crop – but at the same time lowered their estimates of old and new stocks. Now traders are waiting for tomorrow’s report to see if the USDA follows suit.
USDA will release four reports on Thursday: Crop Production Annual Summary, World Agricultural Supply and Demand Estimates, Quarterly Grain Stocks and Winter Wheat Seedings.
1-2 lower on Corn
2-3 lower on Beans
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