Thursday December 12, 2024

• Corn and beans are trading slightly in the red, while wheat is trying to stay positive.
  • A very quiet overnight session as grains remained relatively unchanged across the board.
• Corn futures were unable to trade through key technical resistance on Wednesday. March 25 futures stopped 1 cent short of its October high before lowering. US export values have firmed up to be at par with Argentine and Ukrainian corn. This along side selling pressure at 4.50 futures causing resistance to further rallying.
• Ethanol production increased last week. Corn used for ethanol production rose this week to 104.8 million bushels. Corn usage year-to-date for ethanol is down 23mb from last year’s pace, but 8 million bushels above the seasonal pace. 
• India’s government has put a limit on how much wheat millers and retailers can hold in stock in attempts to lower domestic prices. India’s wheat planting has increased 6.6% year-on-year, though forecasts of a warmer than usual winter are raising concerns of yield being reduced and adding to the tight domestic supply. 
• Argentina’s Rosario Grain Exchange has increased there wheat production estimates from 18.8 up to 19.3mmt due to a better harvest. This number is higher than the most recent USDA’s estimate of 17.6mmt. A larger harvest will now allow Argentina to export 12.5-13.0mmt of wheat compared to 8.2mmt last year. 
• The bank of Canada lowered its key overnight lending rate for the fifth straight time. Trying to provide relief for borrowers and a shaky Canadian economy.