AM Comments 09/11/15
Friday, September 11, 2015, 7:09 AM
Submitted by: Dustin Weiner
The USDA will be releasing the September crop production and S&D report at 11am today. Last month the USDA surprised pretty much everybody with higher than expected crop numbers for both corn and soybeans which pounded prices lower. Today the trade will once again focus on the production portion of this report – with most expecting lower production numbers for both corn and soybeans. While this seems to be a common guess with most people you talk to - after last month’s big surprise nobody wants to get caught leaning too far in any one direction.
Other than the report, there really isn’t much to talk about, just a few blips here and there… The early corn harvest yields remain variable with an early overall trend of being disappointing. // The Brazilian currency continues to weaken vs the $US, making new lows. The lower it goes the more production will expand in Brazil and the Brazilian farmer will be more willing to sell his crops. // The weekly EIA ethanol data showed a 1% boost in production, but a 2% drawdown in stocks which could keep a little support under ethanol prices. // Export sales report this morning showed stronger than expected soybean sales, while corn sales were within line.
Overall as you can imagine, today’s price action will hinge on the USDA report at 11am. While my bias is that this report will be a non-event, you just never know…
Soybeans 2 to 3 cents higher
Have a great day!