After the close recap
November 16, 2016
A very ho-hum trading day as the markets slowly drifted lower. The corn and wheat markets only had a 5 cent trading range adding to the sleepy feeling. The bean market got another sales announcement to China but couldn’t get any support from it. The market
pushed lower and closed 3 ¾ down. The corn market also slid lower all morning on a big
lack of fresh news. December corn was off 3 cents to close at 338 ½. The wheat complex
was mixed again today. KC wheat was 4 ½ lower, Chicago was down 2, but the front end of
the Minny curve was nicely higher by 3 ¾ cents.
Highlights
Wednesday means ethanol data from the EIA. Ethanol production was up nicely this week
to 1.017 million barrels per day. This is the 2nd best production number of the marketing
year and the 6th highest production level ever! Ethanol stocks have also dropped in 9 of the
past 11 weeks. Ethanol production is just slightly ahead of the USDA ethanol pace. With
margins staying very steady, ethanol production should remain strong.
This information is provided by a research analyst and should not be construed as a recommendation
to buy or sell any commodity contract. The information contained in this presentation is taken from
sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness
and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Neither the firm nor the research analyst have any positions in these products.
November 16, 2016
There is lots of chatter in the marketplace that Brazil is starting to steal some Chinese bean
business away from the US in the Dec/Jan slot. This could be a very bearish sign if the
transition starts early as Brazil is expected to have a big early harvest with a large crop
available for export.
The corn market is seeing an interesting technical convergence. The 10 day, 50 day, and
100 day moving averages all converge around 343.50. This has acted as a resistance level
the last couple days and should be a technical point to watch tomorrow.
This information is provided by a research analyst and should not be construed as a recommendation
to buy or sell any commodity contract. The information contained in this presentation is taken from
sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness
and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Neither the firm nor the research analyst have any positions in these products.
November 16, 2016
Closer Look
The grain markets are really having trouble putting together a sustainable rally. The
strength of the dollar is providing some strong headwinds for exports. The dollar has
settled higher for 8 straight days now. Today the market hit 100.5 which is the highest level
since 2003! The focus of the markets are transitioning into being demand driven as we
move past harvest.
This information is provided by a research analyst and should not be construed as a recommendation
to buy or sell any commodity contract. The information contained in this presentation is taken from
sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness
and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Neither the firm nor the research analyst have any positions in these products.