Current Markets as of 8:05 Tuesday, December 4, 2018
Month High Low Change Last
Mar 19 Corn $3.81 ¾ $3.80 $ – ¼ $3.81 ¾
Dec 19 Corn $4.01 ½ $4.00 ½ $ – 1 $4.01 ½
Jan 19 Beans $9.09 ½ $8.99 ½ $ + 3 ¾ $9.09 ½
Nov 19 Beans $9.52 ¾ $9.44 ¾ $ + 2 ½ $9.52 ¾
Oil $53.50 Higher Gold $1,235 Higher Dow $25,770 Lower Wheat $5.15 Mixed
The Des Moines ethanol low rack price is $1.4067. This is $0.1446 lower than the unleaded gas low price of $1.5513.
Yesterday’s USDA Grain Crushing’s report showed 461.968 million bushels of corn was used in the production of fuel alcohol in October versus 470 in October a year ago. Cumulative usage through the first two months of the marketing year stands at 449.2 million bushels versus 445.5 million a year ago
Corn Support is $3.80 and resistance is $4.00. Beans Support is $9.06 and resistance is $9.56. Funds bought 50 Million (10,000 Contracts) of corn and bought 50 Million (10,000) contracts of beans Monday. Just over 95,000 contracts traded last night.
Grain markets are slightly lower in the overnight trade as traders continue to question what was actually agreed to between the US and China at the G-20 summit. Details of the trade truce are lacking but Secretary of Ag Sonny Purdue said he expects China to begin buying U.S. soybeans starting in January. As of now the 25% tariff on US beans is still in place which will keep private Chinese buyers at bay. Any purchases of US beans may come from the government.
Weather: Drier stretch ahead for most of Brazil for at least the next ten days, with rains ultimately returning to the center-south by the 11-15 day time frame, but a drier north allowing any overly wet areas to dry out. Meanwhile, Argentina will be dry this week as well to aid fieldwork there (corn and soybean planting and wheat harvest), with light rains this upcoming weekend preceding a much wetter stretch next week. Rain chances will continue for the 11-15 day period, particularly in northern ARG crop areas
EARLY MARKET FEATURES
Corn – 1 to 3 cents lower off profit taking
Beans – 2 to 4 cents lower on confusion over China trade
Have a great Tuesday! Darren, Brady and David
Gold-Eagle Cooperative Providing Quality Services and Products Innovatively, Profitably, and Professionally.