PM Comments 2/12/15
Thursday, February 12, 2015, 3:02 PM
Submitted by: Eric Kist
Corn – dn 2 ¾ Beans – up 6
Soybeans found support today from a stronger than expected export sales report, along with a weaker dollar. Actual bean sales came in at 27.4 million bushels, versus expectations of 7-15 mbu. Of the total 27.4, China was the recipient of 22 mbu, signaling a continued strong demand for US beans in the face of the South American crop. The question is, how long will this demand for US beans last??
Weekly corn export sales were reported to be right in the middle of the expected range at 39.5 million bushels, up from 33.3 mbu last week. Strong export demand needs to continue in order for the US to meet its annual export projections, but with cheap offers out of Ukraine and another crop on its way from South America that will not be an easy task.
Prepare for a quiet(er) market next week, as the trade will be closed on Monday the 16th for Presidents Day, and both China and South America will be celebrating week-long festivals. As we have seen in the past, however, a limited number of players can lead to increased volatility.