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MARKET COMMENTARY

AM Comments

Thursday, January 8, 2015, 8:01 AM
Submitted by: Joel Pudenz


Another quiet overnight trade for both the corn and soybean markets. Most of the excitement was just before the 7:45 break when Weekly Export Sales hit the news wire. Corn sales were below expectations of 23.6 – 31.5 mln bu., posting 15.26 mln bu. That is currently below the weekly average of needed 19.8 mln bu. needed to meet USDA projections. This isn’t great news for a corn market that’s been struggling the last two weeks. An energy report out yesterday showed decreasing ethanol production and increasing ethanol stocks. This isn’t surprising as ethanol continues to trade premium to gasoline futures, discouraging any blending above mandated levels. Outside markets are mixed with the dollar trading higher, other currencies lower, crude oil slightly higher, and equities higher.

 

Soybean export sales were stronger than expectations (33.46 mln bu. vs 18.4 – 25.72 mln bu. expected). This added a little bounce in the market before the 7:45 break. Weather in South America remains mostly favorable with dry conditions persisting in the Northeastern regions (where roughly 9% of Brazil’s soybeans are grown). We are once again at the upper end of this post-harvest trading range as traders continue positioning themselves ahead of 11:00 A.M. on Monday when we get a fresh fundamental input from the USDA.

 

Opening calls:

Corn steady to a penny lower

Beans 3 to 4 cents higher

 

Have a good day!

 

 

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