AM Comments 12/04/14
Thursday, December 4, 2014, 8:12 AM
Submitted by: Dustin Weiner
The weekly export sales was out this morning and both corn and soybean sales made last week were above expectations – which has our prices firming up. In regards to soybean exports… while they were above guesses, they are 25% lower than the previous week and below the average for the last 4 weeks. This is interesting, but not overly concerning – the export window for soybeans generally only lasts until SA harvest begins (Feb/March). Overall for soybeans -- with the strong pace of soybean exports and the fat crush margins domestically, an upward demand revision is expected in the Dec S&D released by the USDA on December 10th.
While it is nice to see these rallies (thanks to the strong export sales report) the underlying technicals remain somewhat bearish. So don’t be surprised if at some point today this market attempts to slip lower. The outside markets look mixed this morning with the financial markets higher, but crude oil once again lower. This continued drop in crude prices could hang over all other commodity prices like a black cloud.
Corn 2 to 3 cents higher
Soybeans 5 to 7 cents higher
Have a great day!