AM Comments 03/04/15
Wednesday, March 4, 2015, 8:03 AM
Submitted by: Dustin Weiner
Our markets look to start lower today, led by soybeans. Soybeans are feeling pressure as Brazil’s trucker strike situation improves. It went from 100 road blocks last week, to 18 road blocks yesterday and just 7 reported road blocks this morning. Some of the truckers are now headed toward the capital to protest which should decrease congestion at/near the ports.
The weather down there for the next few days should allow for near 24-hour-a-day bean harvest as farmers push hard in order to get their second crop of corn planted. Potential rainy Brazilian weather this weekend however is something to watch out for. This is not just a harvest progress conversation – it is also a potential export issue because while their southern ports can unload in the rain but they cannot load in the rain. This of course then has the potential to delay the vessel line-up in the ocean even further which means there’s a chance some business gets flipped to the U.S.
Next week is the USDA’s March S&D report (next Tuesday). The average trade guesses are showing the projected soybean carryout shrinking while the projected corn carryout grows (both by small amounts). Remember, in theory these numbers are what’s in the market today – any major breaks from those numbers is what causes prices to shift.
Corn 1 to 2 cents lower
Soybeans 7 to 10 cents lower
Have a great day!