Corn – Ethanol expected strong today, resistance at/near 450 also expected in March, full trade
↑ Ethanol is expected strong today after last week bounced back to a strong 1103K
↓ Over the past 3 months we have seen active resistance when March is at or near 450, that is expected to continue especially these last 2 trading days of the week due to low volume
↔March near 450 may also act as a target for funds to take profits on some of their 159K longs
↔Today’s trade opens at 8:30 and is a full day of trade, next week all normal sessions except NYD
Beans – A slightly improved forecast for ARG, funds may be short covering into year end
↓ Morning 10 day maps show a small improvement over Tuesday, rains don't start up until day 7 but the totals from day 7 – 10 are slightly improved this morning
↑ Open interest was down 11K on Tuesday showing signs of funds may be covering part of their 76K shorts, open interest was also lower for corn as well
↓ Tuesday’s trade showed more caution like we have seen for two months now, this caution is being seen even on days when we have 8 AM sales
↔Tomorrow’s exports are expected to be at least moderate around 1100K – 1400K
Wheat – Still trending lower and still no weather threats, tomorrow's exports are expected moderate
↓ The grind lower continues as the 10 day forecast still offers no weather threats and trade is still reacting to the strong GTE rating going into dormancy
↔Tomorrow’s exports are expected to be moderate to slightly poor, 300K – 400K
↔Overseas wheat is still not trading as defensively as US wheat, there are likely additional concerns in overseas wheat trade such as thoughts that Russia may be lowering their yield expectations
Cattle – Light general pressure, trade factoring in cash almost -$2, feeders still tied to the index
↔Monday’s PM BB was choice +0.13 select +0.84 packer BE at 191.37, packer cushion -$1.35
↓ Cattle continues the pattern of generally cautious trade, this is likely due from expectations that we will hear the Mexico border opening again by the end of the year or just after Jan 1
↔Futures finished on Tuesday pricing in cash about $2 lower which is 192 for KS/TX, 193 in NE
↓ We also could be seeing some fund liquidation going into the end of the year, open interest has not shown aggressive signs of fund exiting but at least a light trimming could keep pressure on this market
↔There was no BB report on Tuesday, that report should resume today