PM Comments 1/21/15
Wednesday, January 21, 2015, 3:01 PM
Submitted by: Eric Kist
It was a fairly quiet day in the markets during a period of limited fundamental news. Soybeans traded a touch firmer in the front end of the market and slightly weaker in deferred months, while corn ended the day down a couple cents across the board.
After cancelling nearly 17 million bushels of soybean purchases the past two days, the USDA announced the sale of 6.5 MBu to China for the current season, which may have helped prop up the bean trade for today. Going forward, however, consistent sales announcements are not expected, as a large South America bean crop is looming, and will undoubtedly look attractive to importing nations.
As for corn, fundamental factors remain neutral to negative for the short term. Reports on feed usage have been quiet since the USDA lowered its forecast by 100 Mbu earlier in the month, and ethanol stocks continue to increase to a level where production may begin to back off due to a lack of available storage space, along with tightening margins.