AM Comments 4/15/15
Wednesday, April 15, 2015, 8:04 AM
Submitted by: Eric Kist
It’s currently a crisp and clear morning here in central Iowa. The radar map does show some spotty showers across the state, but hopefully rainfall will be minimal, and not impede producers from getting into their tractors and getting to the fields. Rounding out the week and heading into the weekend, the forecasts do show some small chances of rain throughout the state, but if we are able to dodge any precipitation, a lot of work could get done over the next few days…
The overnight markets traded mixed, with corn down 2 cents and beans higher by 2 cents. The soybean complex has been led higher by strength in the Chinese soybean market, along with strength in soybean oil. NOPA will release its monthly Soybean Crush report today for the month of March, and the market is expecting an increased crush rate month-over-month from February to March.
Overnight, China announced that their GDP growth rate for the first quarter of 2015 was 7%, which in the slowest economic growth for the country since 2009. Over the past several years, Chinese GDP has averaged in the double-digits, and during that same timeframe Chinese demand for soybeans also increased year after year. Certainly there is a correlation the two, and if the world continues to increase its soybean production, and the Chinese growth trend does slow, the supply/demand balance for soybeans will quickly deteriorate.
Beans: 1-2 cents lower
Have a good day!