Fccoop

MARKET COMMENTARY

PM Comments 1/28/15

Wednesday, January 28, 2015, 4:01 PM
Submitted by: Eric Kist


If you’re a farmer with unsold grain in your bins…the market didn’t do you any favors today.  Following up on the heels of yesterday’s losses, corn and beans both suffered another down day.  Corn led the way down by dropping 8 cents, and soybeans followed by surrendering 3 ½ cents.  With January coming to an end, could we be seeing the “February Break,” or will we continue even lower?  That question will be solely dependent upon demand, as the supply question has been removed from the picture. 

On the subject of demand, the USDA will release its weekly export sales figures tomorrow morning.  With the Brazilian soybean harvest and export programs getting under way it is hard to imagine US soybean exports will provide any real fireworks going forward, so now the question is can US corn exports pick up the pace from earlier months?  Weekly ethanol production numbers were released this morning, and showed no slowdown in production yet, but ending stocks did continue to build to the largest level in the past 2 years.  Based off this information, it is easily assumed slowdowns in production are feasible going forward.  More bearish news for corn demand: US exports are competing against exports from the Black Sea region, which reportedly is showing aggressive offers and undercutting US prices for the time being.

Outside markets for today: the US Dollar moved higher, Crude oil made new contract lows, and the US stock market had a second consecutive down day. 

 

Have a good night!

@fccoopgrain

 

« Back

© 2018 Landus Cooperative, All rights reserved.
Landus Cooperative
2321 North Loop Dr., STE 220
Ames, IA 50010
515-817-2100
Departments
Find Landus Cooperative on
facebook icon twitter icon youtube icon blog icon