AM Comments 08/13/15
Thursday, August 13, 2015, 8:08 AM
Submitted by: Dustin Weiner
The grain markets were higher overnight last night (dead cat bounce?) following the disaster yesterday with the USDA pulling the rug out from underneath the bulls – increasing production estimates when the market was expecting decreases. While many in the trade are throwing the flag, thinking the USDA numbers are wrong – it doesn’t matter much in short term price action as these USDA numbers are what we will be trading off of. General consensus now (for those who feel the production isn’t there) is that we will have to wait until we start harvesting and actually see the crop.
Outside markets… overnight China devalued their currency for the third consecutive day (now down 4.4% since Tuesday). Initially this should be a boost for the Chinese exporters but big picture – these devaluations are signaling that China’s economy is weaker than many had thought. The $US is firmer this morning as money flocks to the dollar as it seems like the only safe place for money at this time which could keep a lid on commodity prices for today’s session. Remember, a strong $US does allow our country to buy goods/services cheaper – but on the flip side it makes us uncompetitive in regards to exports.
Corn 2 to 3 cents higher
Soybeans 5 to 8 cents higher
Have a great day!