Markets are softer this morning with corn down 3 and soybeans down 5.
There wasn’t much news in the market session yesterday and its even less so far today. These are about the quietest overnight trades in corn, beans, and wheat we have seen for a long time. There is no new bearish input, but we still lack any bullish catalyst. Crude oil cracked 70 dollars this morning which puts it 7 dollars off the recent low and 15 dollars off the high. Ethanol markets have slipped in the last week which may have plants refiguring their Q1 plans if things don’t stabilize.
The EPA’s latest proposal to extend the deadlines for compliance dates under the Renewable Fuel Standard program has sparked some protests from groups representing the renewable fuels sector. “What we see is an admission that EPA will miss the statutory deadlines going forward, while making it easier to do so,” says Kate Shenk of the National Biodiesel Board. “EPA is acting as if there is no statutory deadline for promulgating annual rules.” Grains traders were looking for the EPA to release its new rules last week, and the lack of any new rules being released put pressure on corn and soybean futures. Both CBOT contracts are down again today, with corn down 0.9% and soybeans down 0.6%.
The White House said on Monday US government officials would boycott the Winter Olympics in Beijing. China opposes the boycott and would take “resolute countermeasures”, foreign ministry spokesman Zhao Lijian told a regular media briefing in Beijing, host city of the 2008 Summer Olympics, on Tuesday. “The United States will pay a price for its mistaken acts,” he said, without giving details. “Let’s all wait and see.”
Have a Safe Day!