Morning Comments – November 25th

In the overnight session the grains moved higher with corn trading up 2 cents, soybeans traded 11 ¾ cents higher and wheat in Chicago up 1 cent. In the hourly chart January soybeans seemed to consolidate between $10.20 and $10.40 yesterday as the range narrowed toward the end of the day. Today, prices have broken out of the $10.40 resistance. Be cautious here if you intend to get long as this week’s low volume may cause more of a fake out than a push to new highs. For January Soybeans overhead resistance is at 10.59 ¼.

Today and tomorrow we will see heavy liquidation of the December contracts as First Notice day is on the 28th following the Thanksgiving holiday. Open interest in the December contracts are 147,663 contracts of corn, 26,577 in wheat, 1,822 contracts in oats, 31,029 in soymeal and 25,149 contracts of soyoil.

Yesterday morning there were a few reportable sales which included 235,000 metric tons of U.S soybeans for deliver to China for 14/15 crop, 174,000 metric tons of soymeal to Thailand for 15/16 delivery and 116,000 metric tons of Sorghum to unknown destinations for 14/15 delivery. This morning it was reported that a South Korean company purchased 93,000 tons of corn to be sourced from the U.S.

Export inspections yesterday showed that wheat outperformed analyst expectations with 447,353 metric tons compared to expectations that ranged between 225,000-375,000 metric tons. Soybeans reported 2,784,913 metric tons inspected for export which was on the high side of analyst forecasts. Corn was disappointing only showing 529,801 inspected over the last week.