March corn up 2 ¼ at $3.7075
Jan beans up 5 at $8.805
The DOW is up
USD is weaker
Crude oil down $.48 at $51.08
The short term outlook for March corn is negative but the market is at an oversold extreme. Another close below 368.25 would prompt a drop to 361 perhaps 357.5. Closing over 379 warns of an end to the pullback. Given a buy signal overnight, system types are long risking 367.25.
The corn lobby failed in its effort to persuade the EPA to reallocate biofuel volumes waived under its small refinery exemption program into its 2019 mandate. Due to be released later this week, the 2019 mandate is expected to be in line with the 19.88 bln gallons, which includes 15 bln gallons of conventional biofuels (ethanol) proposed back in Jun. In a side note, nearby ethanol futures closed at $1.22 yesterday, a record low close.
The short term trend for Jan beans is negative. Another close below 865.75 would provide a target of 837.75. A close over 882 is needed to void the outlook. The whip saw continues…given a buy signal Tuesday, system types are risking 862.75.