PM Comments 2/18/15
Wednesday, February 18, 2015, 4:02 PM
Submitted by: Eric Kist
Outside temperatures weren’t the only thing that was cold today, as both the corn and bean markets quickly cooled off from yesterday’s rallies, with corn down 5 ¾ and beans down 12 cents on the day. Many in the trade felt that yesterday’s rallies left the markets feeling overbought, which led to funds selling today. Also acting as bearish inputs was the US $, which strengthened on the day, and weakness in crude oil, which was back down to the $50/barrel range.
The USDA will be hosting its Outlook Conference tomorrow and Friday, and will be releasing its first balance sheet projections for the 15/16 crop year, along with a real preliminary estimate of acreage intentions for the upcoming year. A survey conducted by the private news firm Bloomberg has pegged corn at 89.1 million acres and soybeans at 86 million acres. If these numbers are accurate, it would be the lowest planted area for corn since 2010. Outside the U.S., farmers in Ukraine may also be considering a reduction in corn area for the next crop year, as the consulting firm UkrAgroConsult reports that it is expecting a 5%-7% decline in corn acres for 2015/16 due to the collapse in the Ukrainian national currency, which has led to soaring production costs.
Have a good night!