There are 2 major things that should most likely to make a notable impact on the futures market this week. First, Tuesday, Nov 6 is the US presidential election day. Second, USDA will be releasing their monthly crop estimation on Friday Nov 9.<\/p>\n
Some\u00a0commentary mentioned that if Romney won the election, he would end the ethanol mandate put in place by Obama which would affect the ethanol price, as a result, \u00a0hit the corn market as well[1]<\/sup><\/a>. \u00a0Under the ethanol mandate,\u00a0about\u00a0 15\u00a0 percent\u00a0 of\u00a0 global\u00a0 corn\u00a0 production \u00a0is\u00a0converted\u00a0 into\u00a0 ethanol\u00a0 for\u00a0 fuel\u00a0 use[2]<\/sup><\/a>. This has largely driven up the corn prices. Therefore, if the ethanol mandate would be lifted off by any chance (if Romney got elected), we should anticipate the corn prices to fall.<\/p>\n On the other hand,\u00a0analysts suggested that the US 2012 soybean and corn harvests were larger than what the USDA projected in October[3]<\/sup><\/a>. Therefore, if the report corrected the estimation with higher crop production, the futures prices of corn and soybeans should go down for the day trade on Friday.<\/p>\n As for the wheat market, I anticipate it to be bullish under the tight supply and increasing demand in the world market.<\/p>\n Cheers.<\/p>\n <\/p>\n <\/a>References:<\/p>\n 1.\u00a0Cummans, Jared. (2012, Oct 13). 4 Investing Opportunites From the Inside Commodities Conference.<\/em> Retrieved from\u00a0http:\/\/commodityhq.com\/2012\/4-investing-opportunites-from-the-inside-commodities-conference\/<\/a><\/p>\n 2. Carter, Coin. (2012). The Effect of \u00a0the U.S. Ethanol Mandat on Corn Prices<\/em>.\u00a0Retrieved from \u00a0google doc<\/a>\u00a0(for short).<\/p>\n