AM Comments 11/23/15
Monday, November 23, 2015, 7:11 AM
Submitted by: Dustin Weiner
Corn open mixed last night and is now trading a bit weaker while soybeans have been weaker since the session opened. The big story in beans centers around the results of the Argentine election yesterday. The winning candidate (Mauricio Macri) has vowed to remove capital controls, including letting the Argentine currency (the peso) float more on its own which should bring with it devaluation. While this potential currency devaluation is important in and of itself – even more relevant to us would be Macri’s plan to remove Argentina’s export taxes on corn and wheat and reduce their export tax on soybeans.
While it feels to many like this news should have already been priced into the markets – soybeans are down over a dime as I type this and bean futures are now at their lowest level since March of 2009 (for a visual, the cardinal and gold chart below is a monthly soybean chart). This likely won’t be the last time we talk about this, as the trade will be watching to see if Macri follows through with his plans after he takes office in mid-December...
So, overall for today – weaker prices across the board with outside markets that are a mixed/weaker input (stronger $US, weaker crude, equities are steady).
Corn 2 to 4 cents lower
Soybeans 10 to 15 cents lower
Have a great day!