AM Comments 01/06/15
Tuesday, January 6, 2015, 8:01 AM
Submitted by: Dustin Weiner
After yesterday’s sharp move higher, the corn and soybean futures markets have slid right back into the trading range we were in for most of December. The funds were active buyers yesterday, buying 10k contract of soybeans and 9k contracts of corn. These moves do appear technical in nature, but if you are looking for fundamental reasons for the move higher you can look at dry weather in Brazil along with continued buying from China (U.S. wheat, U.S. DDGs and U.S. soybeans). In the case of soybeans, many in the trade believe that the USDA will have to reduce their export projections at some point (thanks to the large South American supplies) but it is still too early in the game to remove risk premium from that market. We will need to see sales and/or shipments stop before that type of bearish news will be justified.
Corn is 2 to 3 cents higher
Soybeans are 6 to 8 cents higher
Have a great day!