by Kyle Lehman
Nasty day in the marketplace with corn closing 9 cents lower while soybeans closed 7 cents lower. Index fund rebalancing that was slated to start today had very little impact on the markets overcome by bearish weather for South America in the noon weather maps along with technical selling and anticipation of a bearish report on Friday. Ethanol production last week was up .66% this week with ethanol plants at full capacity enjoying near record multi month margins. 96.5 million bushels of corn was used in the production of ethanol last week up 630K bushels from the previous week. Corn use now needs to average 95.3 mln bushels per week to reach the USDA estimate.
Soybeans closed lower on improved South American weather and early harvest reports of near record yields. The noon weather models improved rain chances for Southern Brazil and most of Argentina for the next 5 days. Tomorrow’s export sales data is expected to show large numbers for soybeans after the USDA announced two large sales this week to China.
Outside markets were bearish the dollar trading to a six week high crude was over $1/barrel lower.