12/11/17

Morning Bullet Points - 12/11/2017

GOOD MORNING—

 

MARKET HIGHLIGHTS

  • Markets weaker this morning before the open. Corn down 1’2 cent and soybeans down 5’2 cents.
  • USDA WASDE report comes out tomorrow at 11 am central time.
  • Corn is expected to come in slightly lower than the Nov report with carryout at 2.478 bbu. Exports expected to be lower while ethanol production is higher.
  • Soybeans are expected to be higher on the US carryout tomorrow at .438 bbu versus .425 bbu in Nov.
  • Corn technically remains near the bottom of its trading range with March support at 3.50 and resistance 3.60.
  • Soybeans remain range-bound with support at 9.80 and resistance 10.00.
  • Wheat continues to post contract lows, support now at 4.14.
  • Trading is likely light today due to the USDA report tomorrow, although no big trading news is expected.

 

WEATHER       

  • Brazil continues to receive mostly good rains. No pressing conditions and forecasts remain wet enough for requirements.
  • Argentina is expected to catch some scattered storms, but conditions remain drier than normal for 94% of the crop.
  • Overall, Argentina remains stressed while Brazil remains in great shape.

 

OUTLOOK

  • Corn is sitting at the low end of its trading range. With funds still short and Argentina dry, the conditions stand for a small rally, but long term trading channels are likely to keep things confined.
  • Soybeans continue to sell off after the 12/5 market high but no long term directional change is indicated.
  • Wheat traded to new lows yesterday.  More price weakness is possible unless corn can rally.

 

Fun Fact of the Day: Candy store owner David Bradley's shop was flooded during a major storm in 1883. As a result of the flood, his entire stock of taffy was soaked with salty Atlantic Ocean water. When a young girl came into his shop and asked if he had any taffy for sale, he is said to have offered some "salt water taffy."

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