CORN

• The corn market is trading at the top of its 3 1/2-cent range after finding support near the 420 mark in the December contract, with support coming from higher wheat and soybeans.
• Later today, the EIA will release its weekly ethanol production data. The trade anticipates a slight bump in production to 1.018 barrels per day, with stocks slightly lower, near 23.288 million barrels.
• Brazil’s largest corn ethanol producer Inpasa, reportedly began expansion at its primary biorefinery. When complete, the plant is expected to produce 2.1 billion liters of ethanol, while consuming 4.6 million metric tons of corn, approximately 10% of the corn production in Mato Grosso.
• Managed funds were active sellers in yesterday’s market, selling an estimated 4,000 corn futures contracts. They are now estimated to be net short approximately 73,000 contracts of corn.

SOYBEANS

• Soybeans are trading higher this morning after holding above yesterday’s lows and just above the 50-day moving average. Higher soybean meal is also lending support to soybeans as it also finds support near its 50-day moving average. Bean oil at the time of writing is near unchanged, trading just four points lower in the December contract.
• Soybean exports remain active with 166,000 metric tons sold to China for the 24/25 marketing year in a private export sale reported by the USDA yesterday.
• Brazil’s Potencial, a biofuel producer, announced plans to invest approximately $109 million to expand capacity at one of its largest soy-based biodiesel plants. Capacity is expected to increase from 900 million liters to 1.62 billion.
• Managed funds were active in the soybean market yesterday, selling an estimated 5,000 soybean futures contracts. This brings their estimated short position to 44,000 soybean futures contracts.

WHEAT

• All three wheat classes are trading moderately higher this morning as they continue to find buying support below the market.
• According to Tass, Russia has harvested 85 mmt of wheat so far, with harvest estimated to be 90% complete. The agency also reported that grain quality is higher this year versus last year.
• While Argentina has seen some rain recently, the Rosario Grains Exchange stated that the 2 – 10mm of rain received in the past 24 hours isn’t enough to reverse wheat losses. They maintain that 25 – 30mm were needed. Last month, the exchange estimated the country’s wheat production at 20.5 mmt.
• Managed funds were rather quiet in yesterday’s trade, buying an estimated 1,500 contracts of Chicago wheat. They are now estimated to be net short 25,000 Chicago wheat futures contracts.

Author

Scott Masters