AM Comments 3/17/15
Tuesday, March 17, 2015, 8:03 AM
Submitted by: Eric Kist
Good morning! Last night’s trade progressed in an uneventful manner again, as prices continue to slide lower on limited trading volume. Similar to the last few days, weakness in crude oil appears to be the major input for the grain markets, as new contract lows have been made again. At the current time, a barrel of crude is trading for just over $43. Markets may also be feeling some pressure from the palm oil market, which has suffered two sharp down days in a row.
Export opportunities for both U.S. corn and soybeans are becoming harder to find, as cheaper offers are more attractive to importing nations (corn offers are cheaper out of the Black Sea, and soybean offers are cheaper out of South America). While farmer selling has been slow to this point, the lack of new export demand may allow grain prices to sink even lower.
Temperatures are cooler this morning in comparison to the previous week, and are expected to stay cool throughout the 10 day forecast. Chances for rain in the 10-day look slim as of now, but a nice warm shower to knock out the remaining frost would sure be welcome.