November 16, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Dec ‘16 338’4 -3’0 NC ‘16 291’0 -3’0
Mar ‘17 346’4 -2’6 Dec ‘16 302’0 -3’0
May ‘17 353’4 -3’0 Jan ‘17 306’0 -2’0
July ‘17 360’2 -3’2 Feb ‘17 308’0 -2’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jan ‘17 985’6 -3’6 NC ‘16 913’0 -4’0
Mar ‘17 994’4 -3’4 Dec ‘16 915’0 -4’0
May ‘17 1002’4 -3’0 Jan ‘17 915’0 -4’0
July ‘17 1008’4 -2’2 Feb ‘17 918’0 -4’0

 

Corn and beans struggled to hold early gains today, unable to break through technical resistance

Both corn and soybeans couldn’t break through the 100 day moving averages in both charts

The US dollar has provided headwinds for grains as other currencies weaken vs the dollar

The stronger dollar makes our grain exports less competitive in the international market

The Brazilian Real is 9% weaker than it was last week, Argentine peso down 4% vs dollar in 3 sessions

Due to this break, China is rumored to have booked cargoes of Brazilian beans today

Brazilian beans are running at a 20 cent discount to US beans into Asia

The dollar today broke through and closed above the recent high set back in December 2015

The USDA did announce the sale of 165,000 tons of beans to China today

South American weather looks to get more rainfall in the dry areas in the 11-15 day period

The bulls are holding onto hope the USDA is underestimating demand as they have in years past

November 16, 2016