The grain trade continues to leave us perplexed as the intraday volatility reigned yet again. The late-day buying that came in wasn’t as aggressive as it had been on Tuesday, and corn closed up 3 cents at 642, beans up 16.25 at 1215.25 and wheat up 8.25 at 674.25. The market looked especially weak given that the dollar spent much of the day down over 500 points.
The trade does remain range bound, however, between $6.00 and the January highs in the mid- $6.60’s. The market continues to tussle with slow demand for ethanol as margins dip into the red and large wheat feeding substitution while looking at the global weather concerns as a potential boon for U.S. exports. The South American weather situation continues to be stable now with large rains in the nearby forecast, but beans continuing higher as private estimates continue to lower total Brazilian and Argentina production.
We will closely monitor the export sales report this morning as it seems to be the lone area where demand can rebound, but we have our doubts about just how badly affected the reports of damage are around the globe. Look for prices to be choppy near the upper end of the recent range, though we continue to feel prices should be nearer the lower end of that trading range.
We look for corn to open 7 to 9 cents lower and for beans to open 7 to 9 lower.
Daily CME spot market prices:
Block cheese: $1.4925 (down 1.75 cents)
Barrel cheese $1.49 (down 0.5 cent)
Butter: $1.495 (down 1 cent)
Grade A NFDM: $1.37 (down 1 cent)
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