It was another choppy trading session with corn higher while beans and wheat closed lower. Funds continue to buy corn while the strong dollar held other dollar-denominated markets in check.
All eyes are still focused on Thursday’s USDA reports. The average guess for corn stocks is 4.995, 0.948 for soybeans, and 1.165 for wheat. Corn acres are expected to be 97.3 million while soybean acres are estimated to be 78.4 million. We don’t foresee any major surprises from these levels except maybe some additional soybean acres (0.5-1.0 million).
Fund purchasing still seems to be the driving factor for corn. December corn settled above its 50 day moving average for the first time since December 10th! This could pave the way for a move back to the $5.85 - $5.95 range.
December 2013 Corn
Cold weather headlines continue to tout wheat damage but wheat has been one of the weakest products on the board. I think this is just more evidence that the market is floating on position changes from the large traders and hedge funds. Our fundamental outlook has not changed. For now we will just have to wait on the report and try not to get sidetracked from the choppy market action in-between.
EHedger | 866.433.4371
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