Grains and oilseeds closed higher after crush comes in as expected. March corn closed 10 ½ cents higher at $7.30 ¾, March soybeans 19 cents higher at $14.91 ½, and March wheat up 5 ½ at $8.14.
NOPA crush came out as expected at 157.31 million bushels while soyoil stocks came in well above expectations at 2.384 bln lbs. Despite the bearish stocks soybean oil rallied sharply along with soybeans closing 0.95 higher in the March contract.
Why the strong rally soybean rally today? Even though the market was expecting crush to be at this level it still confirms that domestic demand hasn’t shown signs of slowing down. With strong export sales and strong crush we are starting to see the funds come back into the market. We are now over a $1.20 off the lows in soybeans and have settled above the 50 day moving average for the first time since September 20th (see chart). We expect soybean prices to remain firm while corn stays range-bound until the January reports.
March corn found support at its November lows and looks poised to try to make a move back up to its 50 day moving average at $7.44 ¾. Much of the strength seems to be following soybeans demand based market rally.
Wheat had a major technical selloff to reach the 200 day moving average but the selling seems to have slowed. Volume was down substantially today
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