BY Dennis Wieseman
April 27, 2016
We are slightly lower across the board this morning which does not mean much as it is still a case of money, money, who has the money. May soybeans did test the $10.20 high we saw on Monday, but have retreated and are about $.03 lower now. The dollar is trading about 165 lower with crude oil up over a dollar and above $45.00 a barrel. Crude oil has not traded this high since December 4. May corn so far today has been unable to test the $3.85 high on Monday. Rain in the forecast for today and then storms again Saturday through Monday. Not much else to talk about as the money flow will continue to dictate the direction of this market for now.
USDA announced this morning the sale of 350tmt of old beans to Unknown and 43tmt of new beans to Unknown. Will this sale be enough to move May soybeans through the $10.20 level? The market displaying a weaker tone today as corn and soybeans uncovered selling at yesterday's highs. Soybeans seeing some pressure from Argentina offering soybean meal at a discount to U.S. prices. May beans supported by bean spread action today as traders buy the nearby and sell the deferred contracts. Corn under mild pressure from talk that China may announce details soon on some of their state owned corn auctions. Weekly ethanol production was down 1.3% versus last week. Corn ground for ethanol estimated at 97.3 million bushel compared to 98.4 million needed on a weekly basis.
Overall, not a bad close today when you look at how low we traded this morning. May corn closed down $.015 at $3.8075 after trading down $.0525. May soybeans closed up $.0125 at $10.19 after trading down as much as $.1575. November traded as low as $9.92 but closed down only $.055 at $10.035. We still have not been able to break above Monday's high on corn or soybeans. Something has to give soon based on the past three days of trade.