PM Comments 2/4/15

Wednesday, February 4, 2015, 4:02 PM
Submitted by: Eric Kist

After an active day of fund buying yesterday, today’s markets saw net selling of contracts as the outside markets reversed course from Tuesday.  Crude oil dropped over 9% today after 3 consecutive days of climbing to close around $48.5/barrel, and the US Dollar index recovered nearly all of its loss yesterday.  In our current period of little-to-no fundamental inputs, the outside markets have been pushing around corn and beans at will, and are the cause of recent volatility. 

On the day, corn closed lower by 2 ΒΌ cents, as it was unable to generate any follow-up buying interest from yesterday.  Aside from fund selling, weekly ethanol production reports were released this morning, and saw ending stocks continue to rise, despite a slowdown in production from the previous week.  A choppy trading pattern will likely continue throughout the month until we get closer to 15/16 acreage intention reports in March.

The soybean trade gave up a good chunk of yesterday’s gain to close 15 cents lower at 9.72 in the March contract.  After finding resistance at $10 yesterday, the trade has dropped, and some market analysts expect new contract lows to be made in the coming weeks. 

Look for tomorrow’s USDA weekly export sales report in the morning.
Projected exports – Corn: 31-39 million bushels (42.1 mbu last week) & Soybeans: 7-18 million bushels (32.6 last week)


Have a good night!




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