Headlines:
- USDA December Supply and Demand report is scheduled for Friday, December 9th at 12 PM ET
- Oklahoma Attorney General Scott Pruitt, who has led legal challenges to the Obama administration’s “waters of the United States rule” and greenhouse gas regulations, has been tapped by President-elect Donald Trump to run the Environmental Protection Agency
- Corn, soy futures slump as Argentine fears ease
Corn and soybean futures tumbled, as dryness fears in Argentina retreated. Markets are braced for Friday’s World Agriculture Supply and Demand report from the USDA. Although no big surprises are expected for the US production and stocks numbers, markets are wary that a huge South American grain crop will be revealed. Corn export sales were very strong, at 1.50m tonnes, compared to expectations of 700,000 to 1.00m tonnes. And weekly US soybean export sales came in at 1.46m tonnes, compared to expectations of 1.00 to 1.30m tonnes. In addition, the USDA announced new sales of 136,000 of soybeans sold to unknown buyers, and 20,000 tonnes sold to South Korea.
Summary:
Yesterday we highlighted comments from Commerzbank in our headline section suggesting that market participants should not “look for any significant price recovery in 2017, with supply remaining ample through next season” for Soybeans. Also, in our weekly newsletter two weeks ago we should that December 6 had the propensity of becoming a pivot turn date for the March Beans contract and today’s big move down confirmed that projected turn date. As shown in the chart below.
The next WASDE report is scheduled for tomorrow and traders were aggressive selling Beans today. Beans gave up 23.50 cents and the next level of key support rests at about 10 dollars.
Corn also was under some pressure. It lost 3.75 cents and both Beans and Corn have record production and yields on the docket for tomorrow. The first arctic blast of the season has hit and it is blanketing parts of the Rockies and Plains with subzero temperatures. The bitter freeze that will affect more than 200 million people and the Wheat futures were not immune to the news. March Wheat rose 7.75 cents on weather concerns and the move up is in lock step with our upside projections.
Crude Oil return to strength rising about a dollar intraday.
