AM Comments 12/11/14
Thursday, December 11, 2014, 8:12 AM
Submitted by: Dustin Weiner
The soybean market was 3c higher at 7am this morning but when the 7:30am export sales report was released it quickly slipped to 3c lower. It’s not like the sales report was overly bearish, new soybean sales (made last week) came in at around 29 mil bushels which was in the range of guesses (trade estimate was between 26mb and 36mb). Since it was at the lower end of the range though, it must’ve caught some people leaning the wrong way and they sold the market down a bit. Corn export sales on the other hand came in at the upper end of guesses which is keeping it supported, trading near steady from yesterday.
Rallies could be tough to sustain today as crude oil is lower (again, see monthly chart below) while the $US is firmer at this time. Also adding to the bearish tone is the continuation of great weather forecasts in South America. However, limited farmer selling and concerns that Monday’s FSA acreage data could be supportive could keep this from completely falling out of bed. The FSA data in November showed producers enrolled 84.842 million acres of corn and 81.312 million acres of soybeans in USDA programs with 1.594ma of corn and 839ka of soybeans put into prevent plant. On Monday, the FSA will update those numbers. Any indications that the acreage numbers the USDA is using may be too high could support the markets.
Corn steady to 1c lower
Soybeans 1 to 3 cents lower
Have a great day!