Grains were trading stronger in the overnight session, but opened and finished lower during the day session. December corn closed ¼ cent lower at $6.50 ¾, December wheat down 6 ¼ cents at $6.36 ¼, and November soybeans down 1 ¼ cents at $12.25 ½.
The fact that we opened lower could be attributed to the selloff in the outside markets early this morning. A cancellation of the EcoFin meeting a day before Wednesday’s Euro Summit was viewed as bearish the Euro Currency and bullish the US Dollar. Despite this crude oil still found plenty of support today as it crossed some more technical moving averages and for the first time since 2008 the front month crude was trading higher than the rest of the contracts going all the way to 2019 over supply concerns.
December corn has stayed near the 200 day moving average for the past 11 trading sessions in a row. We have been in a rather tight trading range ever since the October supply and demand report and the markets seems to be waiting for more fundamental direction. Bean’s and wheat are both trading lower from the October report even despite renewed interest in soybeans from the managed money.
Until we know more about the crop size the market seems to want to stay rather range bound. Of course a shift in demand can always change this, or a sharp move in outside markets. If you would like to receive a trial of EHedger services, including our official hedge recommendations, please sign up using the link below.
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