AM Comments 04/10/15
Friday, April 10, 2015, 8:04 AM
Submitted by: Dustin Weiner
Both corn and soybeans are called steady/mixed this morning following yesterday’s ho-hum USDA S&D reports. Soybeans tried to test the downside last night but yesterday’s low held up which allowed them to bounce back to steady.
Weather is still a key input as we approach planting season in the US (and the final stages of harvest in South America). As of now… there are concerns out there about the wet conditions in the Delta and Southeast potentially shifting more acres into soybeans. Other than that though, when it comes to corn/soybean growing areas conditions are mostly favorable. It is interesting to note regarding Brazilian corn… recent estimates coming from CONAB (roughly, think CONAB = Brazil’s version of our USDA) have the Brazilian corn crop at 79.0 MMT (up from their last estimate of 78.2 MMT). This is interesting because our USDA has the Brazilian crop pegged at just 75.0 MMT – signaling that our ideas on world corn supplies may be understated…
Outside markets… the $US was higher again last night. Lately when the dollar rallies it almost acts as a cap on our commodity markets. Right now the U.S. is simply not competitive in world markets for either corn of soybean exports. A firmer dollar only makes that worse.
Have a great day!