AM Comments 12/18/15
Friday, December 18, 2015, 8:12 AM
Submitted by: Dustin Weiner
It was a mixed trade overnight with corn trading around steady and beans working a bit higher. Brazilian weather concerns in Mato Grosso are starting to rise to the top of the conversation with local forecasts calling for 4 more days of hot/dry weather. As we head into the weekend the funds seem to be trying to buy back some of their shorts to minimize the risk for a change for the worse in the forecast between 1:15pm today and 7:00pm Sunday night. This fund buying seems to be keeping a little bottom under corn as the funds were buyers of 9k contracts of corn and 14k contracts of soybeans yesterday. It is also worth mentioning that there have been a handful of flash US soybean export sales reported by the USDA this week, indicating that U.S. soybean demand may be picking up a bit.
As always with weather markets, things can change quickly and price action can be unstable. That is especially true as the trade thins out around the holidays. As you may have noticed, soybeans had nearly a 25c range yesterday - ranging from 8c lower early in the day to over 15 cents higher at one point later in the session.
One note from the outside markets, crude oil remains under pressure as U.S. inventories continue to build up. Nearby crude futures have made new contracts lows again today – now trading below $35/barrel.
Soybeans 1 to 3 cents higher
Have a great day!