AM Comments 12/31/15
Thursday, December 31, 2015, 8:12 AM
Submitted by: Eric Kist
Overnight markets traded low volume, narrow ranges, and are a penny lower in corn and 4 cents lower in beans as we enter the office this morning. Weekly export sales were released earlier this morning, and will set a bearish underlying tone for today’s trade. Corn and wheat sales were reported to be within the range of expectations, but not overwhelming by any means, while soybean sales are seen as highly disappointing.
South American weather forecasts for the upcoming two weeks looks to be mostly favorable for both Argentina and Brazil, as major crop-producing regions and areas in need of precipitation will receive some nice rains.
Ideas that Argentina corn exports will ramp up now that the new president has removed a substantial amount of government red tape, along with low energy markets continues to weigh on corn prices, and ideas of near-record South American soy production is limiting upside potential for soybeans.
Markets will be closed tomorrow for the New Year’s Holiday, and will re-open at their normal time Sunday night.
Beans: 4-5 lower
Have a great day!