AM Comments 01/13/15

Tuesday, January 13, 2015, 8:01 AM
Submitted by: Dustin Weiner

Grains are higher this morning, with soybeans and wheat rebounding after large losses yesterday (“Turnaround Tuesday”, anyone?).  It is surprising that these markets are higher as crude oil meanwhile can’t find a bid, dropping below $45 a barrel (down just shy of $1.50 as I type this) pushing into 6 year lows.  There are also concerns that ethanol margins are turning negative which may slow corn demand from the ethanol sector. 


On the positive side, traders wonder if yesterday’s sharp decline may have left prices oversold, after all – farmer selling is limited and basis levels on both corn and soybeans at the gulf appear to have firmed a bit yesterday.  There are also reports that US corn may finally be competitive in world markets into March.  Also, interesting (friendly) news in the soybean market – China customs reported that December soybean imports were a record 8.53 MMT!  Wow.


Overall look for prices to potentially hold these rallies to start the day - but upside may be limited and any rallies could/should be viewed as selling opportunities.


Opening Calls

Corn 2 to 3 cents higher

Soybeans 5 to 8 cents higher


Have a great day!







« Back

© 2019 Landus Cooperative, All rights reserved.
Landus Cooperative
2321 North Loop Dr., STE 220
Ames, IA 50010
Find Landus Cooperative on
facebook icon twitter icon youtube icon blog icon