Headlines:
- This week normal trading hours through Wednesday. Thursday Thanksgiving Day – no markets. No night markets, as they resume trade at 8:30 a.m. Friday morning, closing early at 12:05 (All Central Time).
- Deere shares soar, on comparatively upbeat sales forecast
- Cocoa best ag bet for 2017 – coffee the worst, says Rabobank
Speculators, who have been big players in ag markets such as soybeans and sugar this year, will remain “quite active” in 2017, Rabobank said – naming cocoa as its most bullish bet for next year, and coffee the most bearish. The appeal of ags to hedge funds “is unlikely to change in 2017”, Rabobank said, citing the quest by investors for yield at a time of low borrowing costs. “Interest rates are expected to rise only very slowly, keeping investors looking for higher returns,” the bank said, adding that index funds may also “be back in the market toward the second half of next year”. “The interest in commodity index funds, which offer a hedge against inflation, may be rekindled if fear of inflation reappear,” with Rabobank noting “a few signs”, from the likes of bond market spreads, that the pace of global price rises may “slightly increase” next year
Summary:
Today the US Government finalized the requirements for an increased in 2017 biofuels use requirements. In what is being touted as a victory for the Corn industry, energy companies must boost the amount of renewables in the US’s fuel supply. The biofuels sector is praising the move. Today’s announcement marked the final RFS mandates from the current administration.
As expected the grain markets were quiet ahead of the Thanksgiving Holiday. The markets will close after the regular session today and not reopen until Friday morning for a truncated session. March Corn was unchanged from yesterday’s close, Wheat finished down 3.25 and Beans continued to climb another 4.75 cents. The US Dollar is not showing many signs of slowing down as it continues to march upward and onward. The EPA’s renewable energy mandate announcement reversed the weakness seen in Corn & Soybean in early morning trading.
