Morning Comments November 29, 2018
Thursday, November 29, 2018, 2:11 PM
Submitted by: Landus Cooperative
Corn down 1
Beans down 6
Yesterday, the December corn contract closed 4 cents higher settling at $3.60 ½. The July contract was 4 ½ cents higher closing at $3.87. Corn followed beans higher yesterday as trade is concerned about the 2 million acres left to be harvested, and another winter storm is set to move in. Ethanol prices have fallen to a ten year low, but production remains strong, but still behind the numbers needed to meet the USDA’s numbers. The January soybean contract closed 15 cents higher settling at $8.90 ½, and the July contract was 14 ½ cents higher closing at $9.30. Funds continue to sit on a large short position and yesterday’s rally was spurred by a short covering as the Presidents’ meet this weekend. Adding to the positive news yesterday was the announcement of the large sale of 9.9 million bushels to unknown destinations. Negative to the market was China’s crush margins have turned negative as African Swine Fever has taken a hit on hog production and consumer confidence in China.
Last night crude traded below the $50 mark as Energy traders are watching for crude oil production cuts by OPEC, but are anticipating Russia will resist. Lastly, there is a tentative Farm Bill agreement with House and Senate policymakers.