AM Comments 02/12/15
Thursday, February 12, 2015, 8:02 AM
Submitted by: Dustin Weiner
The weekly export sales report was out this morning, it looked friendly to both corn and soybeans as sales numbers came in above expectations. At the 7:45am market pause soybeans were a couple cents higher and corn was a couple cents lower. Corn’s weakness can probably be attributed to the news that a ceasefire that was successfully brokered over in Ukraine. This is to start at midnight on Feb 15th and this has corn and wheat trading just a shade lower.
U.S cash corn/bean basis feels a little firmer today as farmer selling has been slow. Farmer selling has also been slow in Argentina - but that is not the case in Brazil as the farmers there continue to let go of beans as the Brazilian Real fell to a fresh 10-yr low yesterday. This strong Brazilian selling could eventually damage potential export business for soybeans out of the U.S.
Overall, our markets appear to be consolidating a bit lately as the ranges tighten. As these charts get wound up tight like a spring – many feel that a breakout is likely coming, for better or worse…
Soybeans 1 to 3 cents higher
Have a great day!