AM Comments 11/07/14
Friday, November 7, 2014, 7:11 AM
Submitted by: Dustin Weiner
The markets were mixed overnight as we wrap up a week of consolidating trade. Corn and soybeans had been on a tear for a while now with both commodities posting higher weeks for 5 weeks in a row! Without a substantial rally today both of those streaks will come to an end. The soybean market is one to watch with the potential to pop higher, as strong crush margins and poor rail performance (mainly in the eastern corn belt) keep cash premiums firm for beans and meal. Until we see railroad performance improve over there, basis and spreads should remain firm which in turn keeps a bid under the futures market.
Monday morning is the next S&D report which will give us some fresh fundamental news to trade off of. The general feeling ahead of the report is that the soybean carryout could shrink a touch thanks to an uptick in demand while the corn carryout might widen a touch thanks to a slight increase in yield (doesn’t feel like it here necessarily) and a disappointing corn export program.
Weather… outside of a few small snow showers in the Northern belt most areas of the Midwest are expected to remain dry here for a while which should allow most of harvest to wrap up with ease.
Corn down 2 to 3 cents
Soybeans steady to a couple cents higher
Have a great day!