Market Commentary  11/22/17 3:38:20 PM Printer Friendly VersionPrinter Friendly Version

Wednesday, November 22, 2017


Corn closed fractionally higher on this day before the Thanksgiving holiday. CZ was ¼ cent firmer and CH gained ¾ cent. Commodity funds continued to cover some of their large short position today although buying was limited to an estimated 2000 contracts as of midday. Producer selling of corn has slowed in recent days as harvest is all but finished and prices are lower than desired. This has limited selling pressure and has helped allow prices to recover slightly since late last week. The EIA today released its weekly ethanol production and inventory numbers. The report was supportive as last week’s ethanol production was record high at 7.518 million barrels which was 1.9% higher than the previous week. Ethanol stocks rose by 400,000 barrels to 21.9 million barrels. The coming weeks are expected to see a continuation of high production levels as low corn prices and rising crude oil prices should produce good margins. The export sales report for the week ended November 16, 2017 due Friday morning is expected to include corn sales near 37.5 million bu. (weekly sales need to average 26.8 million bu. to reach the USDA’s current marketing year export sales projection). The USDA will release its annual 10 year baseline supply/demand forecast next Tuesday, November 28th.


Soybeans were moderately higher today as commodity fund buying supported the market. As of midday fund buying totaled an estimated 6000 soybean contracts. SF was 8 ¼ cents higher and SH also gained 8 ¼ cents. A weaker Dollar, which fell nearly a full index point, also helped to firm the market. The recent tendency of soybeans trading higher the session before Thanksgiving held again this year. The Friday after Thanksgiving has also tended to be a higher soybean day in recent years. Also supportive today was a slightly drier forecast for Northern Argentina this weekend although better chances for rain exist across most of Argentina next week. Brazilian weather remains favorable for early season soybean development at least through the next two weeks. The weekly export sales report will be released Friday morning – traders expect soybean sales for the week ended November 16, 2017 to be near 44 million bu. (weekly sales the balance of the marketing year need to average 25.1 million bu. to reach the 2017/18 USDA export projection).

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