Unemployment numbers better than expected
The disappointment of the EPA RVO proposed levels specifically in the biodiesel numbers started a break in the bean oil market that pulled soybeans and then corn lower yesterday. Weakness overnight was muted but bean oil is down another $2.30 at the break. Today’s jobs report showed stronger numbers than expected which opens the door for higher interest rates longer into the new year. Everyone wants to look for a pivot and call the top for inflation but while the December rate decision may be 50 basis points vs the previous 75 basis point hikes the Fed will likely have to hold rated higher for longer. The reaction has been lower stocks, bond and crude prices. We will watch to see if this pressure lasts for the rest of the session or buyers emerge at lower prices. For today lets watch 6.53 & 14.18 for support and 6.74 & 14.55 for resistance.