AM Comments 9/23/15
Wednesday, September 23, 2015, 8:09 AM
Submitted by: Eric Kist
Grains are attempting to recover from yesterday’s losses, as corn is up 3 cents and beans are 5 ½ cents higher at the morning break. Wheat futures are providing the momentum in grains, as nearby wheat contracts are trading to their highest levels in nearly a month.
The Brazilian Real (Brazil’s national currency) continues to fall, and has now dropped to its lowest level since 1994. This devaluation is encouraging Brazilian farmers to plant more soybean acres, as the sharp drop in the currency has
pushed soy prices higher in the country, despite the drop in board price.
A Chinese trade delegation will be traveling through Iowa on Thursday, and is expected to sign a ceremonial soybean purchase agreement, totaling an anticipated 6-9 million metric tons of soybeans. Although this has been an annual happening and shouldn’t surprise anybody, traders are still reluctant to hold short positions prior to the official announcement.
Corn: 3-5 higher
Beans: 4-6 higher
Have a great day!