Fund liquidation in the grain market has been apparent in recent sessions. Funds were net sellers of approximately 15k corn, 12k bean & 4k soymeal contracts yesterday. It’s amazing how a couple of weeks can change the tone of even the biggest bull market. Just a handful of weeks ago, there was talk of possible U.S. corn export bans, biofuel mandate reversals and even a run to $10 corn. Whether the weakness is just a retracement in an overall bull market or a full-fledged reversal, even the most optimistic of bulls are second guessing their positions. Yesterday’s release of Weekly ethanol production didn’t help either. For the week ending Sept. 21, ethanol production averaged 809k bpd, down 25k bpd vs. week prior and the lowest weekly level since July 27. Stocks were down slightly to 19.259 million barrels, yet still stand almost 200k barrels higher than the four-week average. Weekly export sales expected tomorrow have the ability to be a game-changer, yet with all the movement out of South America lately, tomorrow’s report might just be another dud. The overnight session saw an early bounce up following the day session’s selling pressure, but that bounce was just to be sold again as we are lower this morning.
We look for corn the grain complex to open slightly lower
Block cheese: $2.0825 (up 3.25 cents)
Barrel cheese $2.04 (up 4 cents)
Butter: $1.94 (unchanged)
Grade A NFDM: $1.68 (unchanged)
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