Corn futures sprang higher yesterday on the headlines around the energy sector spiking oil prices which trickles down into strength in ethanol and corn.
The market managed to rally in the back half of the week, following a “blah” USDA report. We view the inability to break the market on a bearish report as a big positive.
U.S benchmarks are battling to pare losses after opening lower amid geopolitical shock due to the drone attacks Saturday on a Saudi Arabian oil facility. The Abqaiq facility is known to be the most important in the world.
We got two new headlines last night, one that said the U.S. would delay the increase in tariffs until October 15th. The other was that Taiwan would step in and buy 3.6 billion dollars in American agricultural products.
Padding a stellar session yesterday, U.S benchmarks surged into the close and extended gains overnight to a high of 3020. In the Midday Market Minute, we pointed to the likeliness of our upside target at 3004 being achieved into the settlement and at the least ahead of today’s ECB policy announcement.
Grain trader's attention will now turn to Thursday’s USDA report. Bolton fired and the next headline that says the US and China will be meeting to discuss trade (which is inevitable) will suddenly carry a little more weight.
U.S benchmarks are on the positive side of flat this morning with Thursday’s ECB interest rate decision and U.S CPI data looming. First, price action spiked late last night after China published a list of products that won’t be subject to the 25% tariff.
U.S benchmarks have edged ever so slightly lower since yesterday’s peak. Major three-star support has buoyed the tape and although we’ve seen worsening economic data from China and Japan overnight, both the poor PPI and Machinery Orders respectively were anticipated.
