AM Comments 11/03/15
Tuesday, November 3, 2015, 8:11 AM
Submitted by: Eric Kist
Corn followed yesterday’s trend lower and traded in the red throughout most of the night, only to perk up as we entered the office this morning and closed the overnight session a penny higher. Soybeans followed a similar pattern, trading lower overnight, before climbing back up to steady at the morning break.
Overall, there is a general lack of news for the markets to trade (other than weather speculation). Regarding that idea, rains reportedly continue to fall in the major agricultural-producing areas of Brazil, but a drier trend is expected to follow. The next real fundamental input markets will see will be the November 10th Supply & Demand report from the USDA. This report will update production, demand, and ending stocks, and will be the last production update until the final numbers are released in the January crop report.
As harvest continues to progress (corn harvest estimated to be 85% complete nationally; soybeans at 92%), there are a few rumblings that production numbers may again be increased above earlier projections due to exceptional yields. This ideas are undoubtedly being incorporated into the trade, and any deviations from average estimates tend to spur sizeable moves in one direction or the other.
Corn: 2-3 higher
Beans: steady/1-2 higher
Have a great day!