AM Comments 04/20/15
Monday, April 20, 2015, 7:04 AM
Submitted by: Dustin Weiner
Good morning! It was announced last night that there will be additional stimulus in China, which pushed soybeans higher and had equities rallying. Since then things have slipped back a touch, maybe because while stimulus $$ is usually supportive – the fact they need the stimulus may not be. Blips in the Chinese economy could/should create nervousness across most all sectors.
As we look at the screen this morning… corn slipped back as the night session wore on while soybeans held a good portion of their gains. News that the truckers in Brazil are once again threatening to go on strike may also be giving beans a touch of support. The truckers are wanting to lock in fixed rates, but the government is still balking at that idea. One other note on this, from what I read - this strike will only have an impact if it last for more than a month. The reason: the ports should have enough supplies on hand to load boats for at least the next 4 weeks.
Cash movement in the US for both corn and soybeans has been extremely light lately (thanks in large part to farmers heading to the fields). This has given basis a firmer tone to it on the front end and has narrowed spreads. Cash movement in Brazil on the other hand has again been heavy as they watch their Real weaken and basis strengthen.
The weekly Planting Progress will be out this afternoon after the markets close. While rains put a halt to most fieldwork across the belt, traders are expecting the report to show corn planting “catching back up” - approaching the 5-year average. While the rest of this week appears dry, with cold weather in the forecast next Monday’s progress report may only show slight increases above this afternoon’s numbers in percent planted.
Corn steady to 2c lower
Soybeans 2c to 4c higher
Have a great day!