AM Comments 12/10/14
Wednesday, December 10, 2014, 8:12 AM
Submitted by: Dustin Weiner
Prices are mostly unchanged from yesterday as the market awaits the 11am release of the USDA December S&D Report. Other inputs to watch today include crude oil (down again, over $1/barrel) which is bearish and the Brazilian soybean production estimate from CONAB which was out this morning. CONAB estimated the Brazilian bean crop to be a whopping 95.8 million MT (it was 94.0MMT in their November report). Some in the trade think it may even be larger than that. After struggling to get that crop in the ground this fall with planting delays due to overly wet (and overly dry) conditions, the growing weather has been near ideal and that report reflects that. This of course is bearish to soybean prices. Weather down there continues to look great with no signs of long lasting heat in the forecasts.
General expectations for this morning’s USDA report call for a decline in soybean ending stocks due to strong demand, namely exports, while corn ending stocks are expected to increase slightly due to decreased demand. Anything vastly different than that and we could see sharp moves – higher or lower.
Corn steady to 2 cents higher
Soybeans 1 to 3 cents higher
Have a great day!