Markets Mixed Wednesday

It was a slow news day Wednesday and that allowed corn prices to drift in a fairly narrow range. By the close corn was 1-4 cents lower. It was the second day in a row new crop December failed to break through the 200-day moving average. The federal open market committee meeting suggested no real change with business as usual. Traders took that to mean no interest rate hikes anytime soon. There were forecasts for some rain in dry areas of Brazil that would help their second crop corn. This forecast did weigh on corn prices a bit.

Bull spreading was again a major factor in the bean market, with old crop closing slightly firmer while new crop November closed 5-6 cents lower. The USDA did announce a daily sale of 350.000 MT of old crop beans and 43,000 MT of new crop was sold to an unknown destination. That is almost 20 million bushels of beans, but the market seemed to ignore it! The good news is buyers are showing up on the dips. Traders are trying to determine how large the losses are Argentina due to flooding rains. Some are saying 3 MMT while others are saying bean losses could top 8 MMT. It might be a while before we know for sure!