Market Commentary

Dec corn up 1 ¼ at $3.3775
Jan beans up 4 at $9.76
The DOW is down
USD is weaker
Crude oil up $.78 at $55.92

Good morning,

Van Trump says “Corn continues to make fresh new contract lows with the DEC17 contract falling to $3.36^2 yesterday on weaker than expected U.S. exports, more talk of increased U.S. acres in 2018 and to this point mild South American weather. Looking ahead the bulls are talking about possible complications in portions of both Argentina and Brazil. The thought is Argentine could become too dry in several key areas, while heavy rains in Brazil could create complications for second-crop corn. The problem is with domestic and global corn supply overly burdensome the trade is not very interested in looking too far out on the horizon. With this mindset, nearby price rallies seem somewhat limited. Perhaps we could see a +10 to +15 cents pop to the upside should the funds get a bit spooked during the next 30 to 60-days, but an extended rally with fundamental buying and momentum beyond that seems overly optimistic. In other words, I'm still thinking we are dancing to lower-highs and lower-lows. If you're a producer and have to price bushels during this time period, don't get overly greedy.” Technically, CZ established another new low close as the chart nears its open PriceCount objective at $3.35. Daily chart indicators are oversold so some clean up trade is possible as the market is pressing here. If you cannot stabilize the break around this $3.35 count the weekly chart registers support at the spike trade to $3.28 ½ made in September. Resistance starts in the $3.41 to $3.42 area initially followed by the $3.50 reversal high.

SF support lies at the $9.67 low for now and if you can resume the break into new lows, the next downside counts are $9.57 and then $9.38. Resistance is our previous support at $9.81 for now. The previously up-trending formation is broken and the chart is developing a new trend lower.

On Nov. 15, a reporting rule administered by the federal Environmental Protection Agency was to be triggered that will apply to certain livestock operations. However, Leah Ziemba, industry group chair of agribusiness, food and beverage at the Michael Best law firm, said the firm is encouraging producers not to report yet. The reporting applies to certain releases of hazardous substances and the requirement that the government be notified. EPA received an initial stay by the D.C. Circuit Court until Nov. 15, which was to be the deadline by which farms would need to start complying. Ziemba explained that EPA’s motion to the court for an additional stay, which would push the compliance date out until January 2018, now requires that the court act to either grant EPA’s request for an additional stay or issue a mandate that reinstates its prior order with a specific deadline for compliance. (Source: Feedstuffs)

A boom in raw-material prices has helped lift commodity investor assets under management to more than $300 billion for the first time since 2013, according to Barclays Plc. As major resources indexes have recovered from lows in the middle of this year, assets under management have risen for three consecutive months through October to $305 billion from $291 billion in July, the bank said. (Source: Bloomberg)

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