AM Comments 12/08/14
Monday, December 8, 2014, 7:12 AM
Submitted by: Dustin Weiner
We look to start off the week with a similar style trade from last week: limited market inputs giving us mixed price action. One thing we will hear about quite a bit today/tomorrow is how traders are preparing their positions for the USDA S&D Report that will be released Wednesday. Typically this December S&D report is uneventful as most production changes aren’t made until the January report. However, this year with the strong soybean demand we have seen over the last month the trade is already expecting that 14/15 soybean carryout to shrink a bit. Report comes out at 11am Wednesday.
Outside markets… Crude oil is down again this morning (well over $1/barrel lower as I type this) and the $US is stronger against most other currencies with the dollar index making new highs for the move. South America had another great weekend of weather with forecasts calling for more of the same (no damaging heat). Other than that – pretty quiet for fundamental inputs. There are rumors out there that China is back in the market purchasing U.S. DDG’s. While difficult to confirm, this may be what is helping corn trade steady/higher for now.
Corn 1 to 2 cents higher
Soybeans 3 to 5 cents lower
Have a great day!