Markets down sharply again overnight on follow-thru selling from yesterday. This market has been ripe for a sell-off, given the length and magnitude of the upward price movement over the past 2 months. All we’re seeing is some managed profit taking on their long positions…but we remain in a bull market. Could see another day or two of correction before we stabilize.
Palm oil values also fell, now at their lowest level in 2 months. EPA granted 3 biofuel waivers yesterday for the 2018 and 2019 years, some 15 or so remain pending. Will have a big impact on ethanol RIN values, pending outcome.
Mild US winter thus far has not alleviated drought areas much at all in the western corn belt and southwest plains. This, along with lack of sustained freezing temps to knock down bug population, are concerning as we soon head into US spring planting decisions. Tight USDA balance sheets, and subsequent high prices, will result in increased acreage in the US and the world.
Corn: down 8-10c
Beans: down 25-30c