Markets are trading lower across the board with wheat under the most pressure after the U.S.$ firmed following yesterday’s FOMC announcement.

Managed funds on Wednesday were estimated as net sellers of 8k corn to reduce the net long to 150k, net sellers of 15k beans to push the net short out to 86k, and net sellers of 2k wheat to push the net short out to 78k.

Export sales this morning for wheat came in at 457.9 tmt (225-550 expected), corn 1,174.6 tmt (800-1,600), n/c corn 2.5 (0-100), beans 1,424.2 tmt (825-2,000), n/c beans 0 (0-100), meal 261.6 tmt (150-350), n/c meal 0 (0-50), oil 6 (5-60), and n/c oil .3 (0-15).

Across the board sales were within the range of expectations.

Weekly EIA data showed daily ethanol production up 25k bbls per day to 1,103k bbls. Stocks were off by 12k bbls to 22,636k. Weekly production of 324m gallons is ahead of the roughly 310m that we need to average to hit the USDA’s corn usage forecast.

The Federal Reserve lowered the Fed Funds rate by .25%yesterday, but gave a less accommodating outlook, which is supportive the U.S.$ and negative commodity prices.

Strategie Grains expect EU wheat production to increase 12% from last year’s 12-year low. Production is estimated at 126.6 mmt. In their report they also mentioned the poor condition of the Russian winter wheat crop.

India said they would extend futures trading suspensions for key farm commodities until January as they are trying to get food inflation under control.

Brazil based Patria Agronegocios estimated the Brazil bean crop at 170.41 mmt (USDA 169).

South Africa’s wheat crop is forecast down 5.6% from a year ago.

The government funding bill appears to be in trouble, which the recent version included year-round sales of E-15.

Corn posted a lower low, lower high, and lower close with prices falling back within the recent range. The market is oversold after recent losses with support near 4.30 and resistance 4.43.

Beans posted lower lows, lower highs, and a sharply lower close as the downtrend has been re-established. The market is oversold with Jan. approaching long-term support near 9.50 with overhead resistance at 9.80.

Corn traded lower on Wednesday as the selling in beans spilled into the corn market as the price relationship between the two markets hit extreme levels. Demand continues to be strong, but supplies are projected to be large enough to meet that demand. The market is expected to continue its range-bound trade. Producers can look at 0-cost option strategies to protect unsold bushels.

Beans flushed to the downside on Wednesday with selling intensifying as the market broke out to the downside. A proposed $10b farmer bailout would likely incentivize unneeded production in the US and Brazil’s crop is in good shape. The move to the downside is overdone with the market hitting downside objectives. Hold off on any new bearish positions after yesterday’s drop.

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Corn down 1

Beans up 1-2