Corn Report, 11/10/2016

Thursday, November 10, 2016

What a difference a day can make, if you sprinkle in a bearish WASDE and an unexpected president election and we got ourselves a party. The market was materially unchanged throughout the morning till the WASDE report was released and the USDA placed yield at 175.3, production 15.226bln and a C/O of 2.403bln. This was 2 bu higher than the Oct report and right on par with FC stone estimates and a 85mln increase in 16/17 C/O. The markets reacted in turn with the funds selling off almost all of the gains made on Tuesday, an estimated 22K contracts, as CZ just settled off the low at $3.4075. Export sales were a very robust 1.233Mln tons, right in range with the trades estimates, and we continue to crush last years numbers and the pace set by USDA. But the uptick strength we have seen on the overnight has come from a very strong, and surprising rally in beans. Looking ahead to today, if the beans continue to hold or extend the rally I expect corn to follow, but after yesterday’s big action I am looking for a mixed trade, if we do end up closing under $3.37 look to see another leg down on the market. CZ has support at $3.37 then $3.32 with resistance at $3.46 then $3.52.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

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