AM Comments 05/08/14
Thursday, May 8, 2014, 7:05 AM
Submitted by: Dustin Weiner
The export sales report was out at 7:30 this morning, prior to that corn was trading steadyish, after that… the market was down a nickel. The trade was expecting the export sales report (which reflects sales made last week) to show somewhere between 500k and 800k MT of new sales and it came out at only 161k MT. Soybeans on the other hand came out at 41k MT, which was within the range of guesses (the market was thinking it would be somewhere between a negative 100k and a positive 100k MT). The fact it was a positive number (not a net cancellation) is friendly all by itself – reason: we shouldn’t be exporting additional old crop beans when beans are so tight that we need to import them from Brazil… This friendly report could help this bean market correct itself a little bit after the selloff we have seen over the past few sessions. It may take more than that though to turn these charts around in a big way.
Tomorrow morning the USDA will release their monthly S&D report, this will be the first official look at crop sizes and demand for next year (the 14/15 crop, the one that is getting planted as I type this).
Weather… good moisture in the 5-day forecast with rains coming not only later today but potentially again early next week, the first map below shows total potential accumulation in the next 5 days. The forecast looks drier from there forward, shown in the 6-10 day map below.
Corn 4 to 6 cents lower
Soybeans 1 to 3 cents higher
Have a great day!