AM Comments 02/11/15
Wednesday, February 11, 2015, 8:02 AM
Submitted by: Dustin Weiner
With yesterday’s report out of the way, the overnight session has calmed down showing limited volume and a generally mixed trade (which ended up weaker when the screen paused at 7:45am). With no direction from the outside markets a weaker trade isn’t surprising after yesterday’s poor performance.
There are rumors out there that China has been active lately, interested in sourcing soybeans – however they appear to be focusing on South American origins. The weather remains favorable down there and farmer selling in Brazil perked up yesterday as the Brazilian currency (the Real) fell to new lows when compared to the $US. Yields are still being reported as near record or record. Also of note, China’s buying interest could just be them trying to get ahead of their “Lunar New Year Holiday” which starts next week.
The wheat market is under some pressure this morning as Russia and Ukraine are still talking – working towards a cease-fire (it is worth noting that this possible cease-fire has a good chance to be temporary - they aren’t BFF’s just yet). Of course, if the fighting calms down over there exports of both wheat and corn from the Black Sea origins should expand/grow as we move into spring/summer. This would not be friendly to U.S. grain prices as we are already struggling to remain competitive in the global market.
Corn 2 to 3 cents lower
Soybeans 2 to 3 cents lower
Have a great day!