PM Comments 3/2/15
Monday, March 2, 2015, 4:03 PM
Submitted by: Eric Kist
Commodities suffered from a tough trading day, as corn, beans, and wheat futures prices all dropped lower on the first trading day of March largely due to managed money fund selling. Early in the day corn tested its 100-day moving average, but failed to break through, and ended the day down nearly 6 cents. Soybeans had been trading above the 100-day moving average, but dropped 19 ½ cents in the nearby March contract to finish below the 100-day mark.
The trucker strike in Brazil is still leading the soybean market around, and the latest news from the country has been bearish to prices. For the most part, the strike has quieted down, as a majority of the roadblocks on major highways have dissipated to allow normal passage of traffic. That, coupled with favorable weather forecasts should allow the South American harvest to make steady progress throughout the next couple weeks.
Export shipment inspections for the week came in on the high end for corn, and the low end for soybeans. Corn exports for the year are about on pace, and soybeans have been strong to this point. Some in the market are expecting the USDA to reduce the soybean carryout in accordance with a modest uptick in exports in its next S&D report, due out March 10th, but any changes, if any, will be minimal, and will not significantly alter the total carryout number.
Have a good night!