Soybeans finished strong after a supportive weekly export sales report. January soybeans closed 12 cents higher at $14.91 ¼, March corn 6 ¼ cents lower at $7.51 ½, and March wheat 2 cents higher at $8.62.
The morning session was rather weak for grains and oilseeds especially after the opening bell. The US Dollar Index was sharply higher which weighed on commodities especially crude oil. Soybean sales were strong but the highs weren’t made until the end of the day. Corn was understandably weak throughout the day given their poor export sales.
Weekly Export Sales (million bushels)
Conab is estimating Brazil’s soybean production to be 82.6 million MTs and corn at 71.9 million. Respectively the USDA is estimating 81 million and 70 million. A strong Brazilian crop still supports our re-ownership idea. For those of you who haven’t had a chance to see the strategy please click on the video link below.
Demand continues to control the market. As we saw today, the market reactions coincided with the divergence from sales expectations with soybeans and soymeal outpacing the rest. March corn is still holding steady between the 50 and 100 day moving averages.
Volatility remains quite low from the range corn has set but can it stay that way through the January reports?? The chart below depicts how far vol has come off its highs made over the summer.
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