PM Comments 2/2/15
Monday, February 2, 2015, 4:02 PM
Submitted by: Eric Kist
Corn traded both sides of the market into midday, supported by oversold ideas, but still lacking enough fresh fundamental news to generate much buying interest. Eventually, corn settled a ¼ cent lower for the day. Weekly corn export shipments totaled 26.1 million bushels, which came in below the trade estimate range of 28-32 mbu, and below last week’s 34.9 mbu. At this point, we will have to average 37.5 mbu per week to reach the USDA export forecast of 1.750 billion bushels for the year, and with Ukraine/Black Sea region currently offering corn at competitive prices compared to US corn, those export targets may be a best-case scenario.
The soybean trade fared similar to that of corn, trading higher into midday before ending the day down 1 ½ cents. Early day market support was generated from a strong export report above expectations, to go along with strength in the soyoil market. However, news of increased harvest activity in Brazil and the recent weakness in the Brazilian currency has led to moderate-to-strong farmer selling in South America, and potentially could have acted as a cap on today’s trade.
Have a good night!