The grain complex continued its choppy two-sided Wednesday ahead of Friday’s USDA reports. Corn got a boost early yesterday on word that U.S. ethanol production rose 0.2% last week reaching a seven-week high. Output is down from earlier this year as ethanol producers continue to face low margins. Still, the news was an impetus for a post-election bounce this morning. U.S. Dollar strength ought to act as a headwind, however, capping gains on corn to some degree. Still, the grain markets’ resilience Wednesday ought to be noted amid weaker energy and equity markets. Producers looking for coverage are advised to buy call options as volatility and premiums have fallen.
Look for grains to open modestly steady to slightly higher across the board.
Block cheese: $1.99 (down 12 cents)
Barrel cheese $1.91 (down 16.5 cents)
Butter: $1.87 (down 1 cent)
Grade A NFDM: $1.57 (unchanged)
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