Another wild day on Thursday as lower values were reversed into much higher values. Today looks like a snoozer compared to the last two days. Profit taking and reality seem to be getting a grip. NC sales have even picked up from producers on this rally. In what appears close to a panic mode, SA end users are upping tolerances of damage and moisture to levels that no sane person would allow, IMO. Using poor quality to process must be the lesser of two evils of being hit with the cost of changing to the US to ship or paying the buyer for delays, including ship demurrage. The setback in corn yesterday allowed the bean/ corn ratio to regain the 2.50 plateau. That should continue to encourage some additional acreage and double crop beans at current levels, but that might need some forward sales by producers to get that value. The volume was still massive yesterday in beans, but seemed small compared to Wed. OI squeaked out a 1357 gain. Meanwhile, products had big volume days and both lost OI. Oil seems to have more specs taking profits as momentum has faltered. Basis is in the tank, down 5-15 cents and the spreads after some strength on the drop, have weakened overnight back to the 9 cent level. Look for a liquidating day and a lower close.
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