AM Comments 11/04/14
Tuesday, November 4, 2014, 7:11 AM
Submitted by: Dustin Weiner
The corn and soybean markets are lower this morning with the charts (especially soybeans) starting to turn ugly as the market quickly retreats off of recent highs. A lot of chatter this morning about the energy markets, particularly crude oil. Crude oil was down $3/barrel at one point last night, pushing to the lowest levels we have seen since 2009! This type of action seems to have put all commodity futures on the defensive.
Another input into last night’s lower prices was the release of private crop estimates yesterday afternoon which confirmed ideas that production/yields will be big (a 14.7 billion bushel corn crop and a bean crop that is over 4 billion bushels). Another private company is set to release their estimates at 10am today. These numbers are all being published this week because the USDA will be out this coming Monday with the November S&D report.
Weather… although there are spotty rains in parts of the corn belt the general feeling is that the weather is still favorable for harvest and over the next 7-10 days harvest should continue to progress.
Corn down 5 to 7 cents
Soybeans down 10 to 15 cents
Have a great day!
Also, here is an interesting article from The Wall Street Journal for those interested in general rail logistics flows and the recent logjam that drove the soy complex bananas recently: click here