AM Comments 04/07/15
Tuesday, April 7, 2015, 8:04 AM
Submitted by: Dustin Weiner
We saw early strength last night, but the markets all ended up weaker this morning – nothing overly exciting. Soybeans tried to rally early on but failed and are now almost a dime off of the overnight highs. There were some thoughts last night that slow loadings in Brazil may push a soybean boat or two back to the US, which probably contributed to the early strength.
The crop ratings were out on wheat yesterday afternoon (after the close) and the crop came in a touch better than expected which could be contributing to the weakness in grains today. There is wet weather coming (welcomed by most) but really it’s too early for the market to get excited – one way or the other – about nearby weather forecasts. The 7-day precip map is at the bottom of these comments for your viewing pleasure.
This Thursday the USDA will release their April Supply & Demand report, giving us an updated look at ending stocks for corn/beans. Early indications are calling for a larger corn carryout (as indicated by the stocks report back on March 31) and a tighter bean carryout. After that is behind us, the weather could turn into the main driver of price.
Corn steady to a penny lower
Soybeans 1 to 3 cents lower
Have a great day!