AM Comments 2/2/15
Monday, February 2, 2015, 8:02 AM
Submitted by: Eric Kist
Good morning! I hope you all survived the snowstorm and have dug yourselves out this morning. Reports show Des Moines received somewhere between 12-14 inches of snow in places. Following the weekend, the Sunday overnight session traded mixed to a little higher, and a mixed trade is expected during today’s session as well.
Key inputs will be strength in crude oil, weakness in the US dollar, and limited farmer selling which has kept basis levels firm, along with a general feeling that last week’s sharp sell-off has left prices oversold. The market may find some support from Friday’s Cattle Inventory Report, which indicated cattle and calf numbers at 101% of a year ago, which was a bit surprising for traders, as a lower number was expected. On the bearish side, reports of negative Chinese crush margins may indicate limited Chinese demand for soybeans in the near-term.
Have a good day!