Corn and beans closed moderately weaker today in a thin pre-holiday trade. There was some excitement today as shortly after the open corn futures plunged to as much as $.17 lower after 1,000+ contract sell order hit the market and pushed right through buy orders. The market was able to rally impressively and even traded higher for a time before selling came back into the market near the close. News is pretty scarce these days, the Argentine grain exchange did increase their estimate for the Argentine corn crop to 15.8 million ton vs. USDA at 14.0 and 12.6 last year. Producer end of the year selling remains active as concerns about storability continue to pressure nearby corn basis levels as well as the need for end of year income needs. The next major fundamental event for corn looks to be the January 12 USDA report, in the meantime I am sure we will have plenty of first of the year fund type discussion to move prices one way or the other.
A choppy soybean session today with influence from the volatile corn market but prices ended $.02 lower. There was hope for higher trade today as USDA announced a 348,000 ton soybeans sale to China but this kind of news is apparently old hat, apparently keeping this from helping the market much today. Either way we would still expect that USDA will have to increase the export estimate for the year possibly pushing carryout near 200 mbu.
Phil
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