Current Markets as of 8:15 Thursday, November 29, 2018
Month High Low Change Last
Dec 18 Corn $3.62 $3.59 $ – ¾ $3.59 ¾
Dec 19 Corn $3.97 $3.94 ½ $ -1 ¼ $3.94 ¾
Jan 19 Beans $8.90 ¾ $8.83 ¾ $ -6 $8.84 ½
Nov 19 Beans $9.38 $9.32 ¾ $ -4 ¾ $9.33 ¼
Oil $51. Higher Gold $1,225 Higher Dow $25,320 Lower Wheat $4.94 Lower
The Des Moines ethanol low rack price is $1.4067. This is $0.0872 lower than the unleaded gas low price of $1.4939.
Ethanol prices fell to a 10-yr low – Crude oil is fighting to stay above $50 per barrel
Corn Support is $3.60 and resistance is $3.78. Beans Support is $8.63 and resistance is $9.06. Funds bought 90 Million (18,000 Contracts) of corn and bought 40 Million (8,000) contracts of beans Wednesday. Well over 172,000 contracts traded last night.
The markets are mixed to lower with soybean prices leading the way as we approach the highly anticipated meeting between Trump and Xi Jinping. Chinese crush margins have turned negative for the first time in nearly four months as the African Swine Fever has taken a hit on hog production and consumer confidence. There is talk that China will begin buying pork for their state reserves to help producers dealing with depressed hog prices
Weather: Scattered snow and mixed precip continue to swirl through the northeastern corn belt this morning after only light action in the northern Midwest over the past 24 hours; a more widespread system is still on tap this weekend, with mixed precip seen heaviest in the heart of the Midwest from eastern NE through IA, northern IL, and western IN. Forecasts are still running drier past that, with below-normal precip now in the 6-10 and 11-15 day time frames, with temperatures still set safely in the below-normal category throughout 24-hour rainfall amounts were mostly confined to southern and western Brazil, mostly in the 0.25-1.5” area, with the best chances shifting northward into northern BRZ across the weekend.
EARLY MARKET FEATURES
Corn – Had a decent day to the upside for a change, with March closing right at the 10 day moving average [$3.73]. ‘Decent’, ‘solid’, ‘respectable’ terms were all used to describe the corn price action. But it appears that finding a directional bias or reason for the corn market is low going into this weekend’s trade summit. Probably wise. Calls: steady/mixed
Beans – Continued to make the best of a kind of friendly technical chart look yesterday. Specs have been short beans and add to the reason for a bid under the market. We’ll likely see the 50 day moving average cross up through the 100 day in both Jan and Mar giving a moderate buy signal for some technical traders. Also, talk of the administration renewing the biodiesel blender’s credit lifted bean oil ideas. Calls: 3-5 lower
Have a great Thursday! Darren, Brady and David
Gold-Eagle Cooperative Providing Quality Services and Products Innovatively, Profitably, and Professionally.