Morning Market Review by Bryce Knorr
Futures are trading higher across the board this morning, fueled by more buying in soybeans. Outside markets are also returning to normal, with a slew of economic data out the next two days for direction.
Corn is following soybeans higher today, with follow-through buying noted after yesterday’s strong end-of-the-month gains. December corn has a lot of chart targets above $7.59, headed by the 50-day moving average at $7.65.
Lack of export demand as high prices ration usage remains the biggest headwind for the market. Israel bought 3.5 million bushels, likely from Ukraine, in the only deal on the wires this morning. Thursday’s regular Export Sales report is delayed until Friday due to Hurricane Sandy. The latest ethanol production numbers are due at 10 a.m.
The weekly Crop Progress report finally came out Wednesday night, showing rains in the eastern Corn Belt slowed harvest progress. USDA reported 91% of the crop is cut, up only 4% from the previous week. Pennsylvania (64%), Michigan (57%), and Ohio (64%) lag the rest of the country but at still well above average. Storms including the remnants of Sandy, will further slow progress this week.
Volume is finally showing signs of life, jumping 62% Wednesday to 317,518. Open interest rose 7,713 on moderately heavy fund buying.
Prices overseas were also higher today. Futures on the Dalian exchange in China posted fractional gains, while corn in Paris is up .5%.