Our corn and soybean markets are currently trading lower and both commodities spent the entire overnight session trading below yesterday's close. The corn market yesterday got a slight boost thanks to the EPA announcing their RFS quotas for 2017. Ethanol from corn came in at 14.8 billion gallons - it was 14.5b gallons in 2016. This indicates there will be approximately 100 million bushels of additional corn demand. This of course was viewed as bullish corn but mid-day yesterday the Feds announced another rate hike (likely in June) which weakened the equity markets, rallied the $US and seemed to keep our commodity markets in check. The $US continued to climb higher overnight last night which could once again be part of the reason we spent the night in the red.
The weekly export sales report will be out at 7:30 this morning, and while this could give the market a new direction – at this time it appears trading much higher could be difficult. Simply put, the weather looks non-threatening and if the $US is going to rally we will likely stay under pressure.