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Commentary
Soybeans and corn were resilient today as foreign buyers snap up cheap U.S. cargoes ahead of the election in my view. With energy prices weak and the US Dollar strong today, the fact corn ended higher is a bullish sign in my opinion. We have consecutive closes over key resistance at 416 this week buoyed by another day of impressive flash sales announcements. Strong export sales are seen once again tomorrow morning, with corn sales expected at 2.2 to 3.3 million metric Tonnes, and soybeans at 1.2 to 2.4 MMT this week. As previously mentioned, the USDA announced more demand this morning with 100,000 Tonnes of corn told to Unknown Destinations, which brings the total to Unknown for the month to 1.9 million Tonnes. Unknown by the way is spelled C H I N A. Mexico has been our biggest buyer and it will be interesting to see if they are front loading purchases now or if this is just the start of a bigger buying spree exceeding USDA expectations. Suddenly our biggest yield in history has taken a back seat to demand for now, but I see fund short covering as part of this week’s rally. Resistance for Dec corn is 424, and a close above has 4.32 and 4,37 as the next key resistances for Xmas corn. Support is 416. A close below and its 4.03, then 4.00.
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Sean Lusk
Vice President Commercial Hedging Division
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