AM Comments 06/10/14
Tuesday, June 10, 2014, 7:06 AM
Submitted by: Dustin Weiner
The corn and soybean markets this morning are both trading near steady, with corn trading a touch higher while beans are a touch lower. The next big piece of fundamental news will be out tomorrow – the USDA’s monthly S&D report.
Generally speaking the market isn’t expecting major changes in this report. In regards to old crop corn – ethanol/export demand feels like it has remained firm while feed demand likely won’t get changed until after the June Quarterly Stocks Report. The old crop soybean carryout isn’t expected to move much either – although both crush and exports appear to be running above the projected pace that the USDA had projected, the somewhat unknown (and maybe exaggerated) import numbers could keep this report from being overly bullish. In regards to new crop carryouts? It is probably too early for them to start raising production estimates, but if the weather stays like this – those will most likely be coming.
Overall this report tomorrow could/should show slight reductions in old-crop carryouts for both corn and soybeans. While this initially could be viewed as friendly to prices – the market will likely shift it’s focus back to weather and crop development shortly afterwards. For today – we are seeing a bit of short covering in corn ahead of the report which is causing the front end of the market to hold its ground. Other than that – it is quiet.
Corn steady to 2c higher
Soybeans 1 to 3 cents lower
Have a great day!