Wheat Report, 10/26/2016

Wednesday, October 26, 2016

Corn had a relatively quiet trading session, with weakness in throughout most of the trading session before finding some buying support at the close and able to end the day on a positive note at $3.4950 with the funds buying an estimated 5K contracts. News remains fairly limited as harvest continues at a break neck speed before the rains hit “this morning” and the rest of today, but the forecast looks positive to ramp it up by end of week. I saw a stat yesterday evening that every bu of corn that the US producer sells he is losing money, while every bu of beans he is making a profit, now while this is a broad statement the market would reinforce this with cash sells heavy on the soys. But any rally we see in the flat price arena will be heavily sold into by the producer, as we have a balance sheet with a 2.3bln bu carryout and potentially inflated demand picture yet. Looking ahead to today, corn is up 1 on the break, and it feels like we could see some support at the $3.50 again as the trade seems content waiting for harvest to button up and go from there. CZ has support at $3.4650 then $3.41 with resistance at $3.5675 then $3.60.

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