AM Comments 11/10/15
Tuesday, November 10, 2015, 8:11 AM
Submitted by: Eric Kist
Lower markets again this morning following yesterday’s sell-off, and ahead of this morning USDA World Supply & Demand report, due out at 11 AM central time. Traders are expecting both corn and soybean ending stocks numbers will increase slightly, due to bigger yield numbers for both crops. The average corn yield is expected to grow 168.2 bu/ac (168.0 prior), and soybeans are expected to be 47.5 bu/ac (compared to 47.2 prior).
Due to these increases, ending stocks are expected to be around 1.6 billion bushels for corn, and 425 million bushels for soybeans. For reference, at this point in time last year, corn ending stocks were projected to be 1.73 billion bushels, while soybeans were pegged at 191 million bushels.
Also hampering on the markets again lately has been the strength of the US $, which has been on a tear the last few weeks. As of this morning, the $ Index has made fresh 7-month highs in value.
Markets should be fairly quiet ahead of the report, but once 11 AM hits there is always a chance for fireworks.
Corn: 1-2 lower
Beans: 2-3 lower
Have a great day!