AM Comments 8/6/15
Thursday, August 6, 2015, 8:08 AM
Submitted by: Eric Kist
Low overnight volumes have the markets feeling a bit sluggish this morning. Beans are 4 cents weaker, while corn is ½ cent – 1 cent higher, but both closed the overnight session poorly by dropping a few cents before the morning pause.
Outside markets continue to influence the grains, as the US Dollar Index is gaining again this morning, and crude oil is on the downslide again, making new lows of 44.50/barrel. Over the past month the price of crude has dropped more than $12/barrel – roughly a 20% decrease in value from July 6th.
Export sales this morning were bearish for corn and bullish for beans, as new crop soybean sales were reported as being above trade expectations, and above last week’s totals as well, providing a small glimpse of hope that the new crop export pace can come to life going forward. Corn export continue to flounder, as South American corn offers continue to trade at a discount of nearly 30 cents/bushel to U.S. corn.
Beans: 3-4 lower