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Woohoo! I love having good news to write about. Soybeans made an impressive move this afternoon to finally break through the $12 resistance and push ahead from there. Short covering this afternoon finally broke through the infamous level, which resulted in some technical trading from there. May beans settled at a 6 week high, and are now once again above the 50 day moving average. The futures month is currently +70 cents off the February 29th lows, having clawed back nearly 25% of the sell off from the $14.20 November highs. The next upside target is the 38.2% retracement level of $12.40. November beans are at a two month high. Wheat and corn struggled to follow soybean's suit, although the beans extreme positive did help to pull the grains off their lows.
In other positive soybean news, this morning, the USDA confirmed the sale of 120,000 tonnes of U.S. soybeans for delivery to unknown destinations in 2024/25.
The Federal Reserve left interest rates unchanged at the close of their March policy meeting, as expected, with three cuts still expected yet in calendar 2024. The U.S. dollar is plummeting post-decision.
Export sales are due out tomorrow and are expected to land within expectations- nothing crazy.
Today's EIA report showed that commercial crude oil stocks decreased 2 million barrels per day to 445 million. Ethanol production increased 0.2 million to 26 million, while ethanol stocks increased 23 thousand barrels per day. The production of ethanol utilized an estimated 103.6 million bushels of corn in the week ending March 15, up from 101.4 million the previous week, and up from 98.1 million the previous year. The production of ethanol for the marketing year to date utilized an estimated 2.925 billion bushels, up 137 million bushels or 4.9% from the previous year's pace, and 92 million bushels above the seasonal pace needed to hit USDA's target.
Funds were thought to have been mixed today with beans and corn buyers and wheat a seller.
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