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Outside headlines lifted grain markets today after a poor week. Since last Friday, beans are down 31 3/4 cents, corn is down 7 cents, and wheat is down 36 cents.
North Dakota’s three-person Public Service Commission approved a permit for the Summit Carbon Pipeline. This knocked down another hurdle in the way of building the pipeline. The pipeline could be a boon to ethanol plants supplementing their crush margins with government payments for carbon sequestration.
Another headline helping corn prices specifically was the Mexican president’s narrow statement regarding the nation’s effort to protect corn consumption from GMOs. The leader stated that it was protections for NonGMO white corn, the nation was going to enshrine in the constitution. Nothing was stated regarding the GMO yellow corn Mexico imports from the US for mainly feed consumption. The prior president made little distinction between the two.
Soybean processor and producer lobbies are pushing the new congress to extend 40A which is the Biodiesel and Renewable Tax Blenders credit in the US that expires on Dec 31st. An extension of 40A would retain value for soybean oil past December and renew enthusiasm to produce advanced biofuels based on vegoils.
Coincidentally, China is changing its tax rebate system to disfavor certain commodity exports including the very controversial UCO (used cooking oil) exports. Ending the rebate possibly ends the very cheap UCO entering the US.
The slight grain news we did get was neutral/positive.
NOPA crush showed US stocks of bean oil remain tight and as low as a year ago. Crush outperformed a year ago as expected at a record 199.959 million bushels, and is on pace to make the 2410 mbu pace set forth by the USDA…at minimum.
Export inspections today were all within expectations, with no flash sales announced this morning.
The CFTC commitment of traders data released today as of Tuesday, November 12th showed a massive week of buying the funds in corn futures; in the week, managed money traders were buyers of a combined 87,947 contracts of corn futures/options, buyers of a combined 15,577 contracts of soybean futures/options, and sellers of a combined 14,526 contracts of Chicago wheat futures/options. This was the biggest week of fund buying in corn since May when funds bought more than 115,000 contracts. This now makes managed money traders net-long 109,989 contracts of corn, net-short 54,536 contracts of soybeans, and net-short 45,307 contracts of Chicago wheat. In soy products, funds were buyers of another 11,438 contracts of soybean oil, and were sellers of 19,500 contracts of soybean meal; this makes them now net-long 75,144 contracts of oil, and net-short 27,631 contracts of soybean meal.
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