PM Comments 5/7/2014
Wednesday, May 7, 2014, 3:05 PM
Submitted by: Joel Pudenz
After gaining nearly a dime yesterday, corn futures traded modestly lower today as July corn closed 3 cents lower and December corn closed even. The market felt some pressure as tensions in Ukraine thankfully ease. Vladimir Putin claimed to be pulling Russian troops back from the Ukraine border; U.S. intelligence has yet to confirm if the claims are true. Today’s ethanol use estimates were lower than the average needed to meet USDA projections, adding additional pressure. Weather forecasts limited downside price movement; rain may continue to hinder planting progress in the northern Midwest.
Soybean futures settled 13 cents lower in July and 8 cents lower for November. More rumors are circulating about Brazilian bean imports, specifically about 2 additional cargos trading into the Gulf of Mexico; funds were net sellers on the day also. Expect the markets to be mixed/choppy into the USDA S&D report due Friday.
Weekly export sales will be reported tomorrow with corn to be 20 to 32 mln. bu. and beans to be net even.
Have a good afternoon!