AM Comments 10/22/15
Thursday, October 22, 2015, 7:10 AM
Submitted by: Dustin Weiner
The weekly export sales report was out at 7:30 this morning, the trade was looking for large soybean sales and they were large -- above expectations actually which should support prices. Corn sales on the other hand came in below expectations which was disappointing – corn was trading a couple cents higher before the report was released and slipped back to steady shortly afterwards.
Here soon, the trade will start to shift their focus from US production to world weather. Current two topics of discussion: South America and Australia. In this week’s weather for Brazil (they are planting, it is approximately April down there for reference) they are getting the crops in the ground but have been dry so far. Today they do have welcomed moisture in the forecast for next week but if that doesn’t materialize, this could become a bigger topic of conversation. Australia is dealing with drought conditions also as Australia’s wheat/milo/canola country has been overly dry and it seems to be intensifying in spots with not much relief in the forecast.
One little note from the CME: daily limits are changing November 2nd. The new daily limit on corn will be 25c (it is currently 30c) and the new daily limit on soybeans will be 60c (it is currently 70c).
Overall for today, it looks like soybeans have a shot to trade above yesterday’s close for the session while corn could chop around on both sides of steady thanks to poor exports.
Soybeans 3 to 6 cents higher
Have a great day!