Markets Lower Wednesday

It was a quiet day Wednesday, as corn closed 1-2 cents lower. The Dollar Index was higher, which gave the bears a bit of an advantage. The weekly ethanol report from the Energy Information Administration showed production down 4,000 barrels per day from the prior week at 995,000 barrels per day. This was still the second-highest weekly production in the past two months. Ethanol stocks declined 334,000 barrels to 22.52 million barrels. I read Zimbabwe bought 469,000 MT of corn because of the drought over there. The bears were hyping that none of it was bought from the U.S. However, it is still world demand from a country that sometimes has corn to export on the world market.

Beans did rally off the lows of the day but were still down 4-5 cents. There was likely a little profit taking as beans have rallied nicely recently. There was heavy rain in Southern Brazil but there harvest is still ahead of average. I am hearing more about the political turmoil in Brazil. Apparently both political parties are facing corruption charges. Even one or two of the judges that will hear the case are involved. It sure sounds like a mess that will have an affect on their economy that will increase the cost of their beans and corn on the world market. You would think that will drive more export sales to the U.S.