AM Comments 01/04/16
Monday, January 4, 2016, 7:01 AM
Submitted by: Dustin Weiner
The first piece of headline news to start the year comes from China, as Chinese equities took a nosedive overnight, ending nearly 7% lower. This (along with favorable weather forecasts) is helping drag soybeans prices lower this morning. So far, 2016 feels awfully similar to 2015 – favorable South American weather, concerns popping up over the Chinese economy and a $US that (while a shade weaker today) will keep a lid on US exports at these levels.
Generally speaking don’t be surprised if it is quiet here in the short term. Over the next week or so our markets could drift/float around these levels because the big January 12th reports (quarterly stocks, final production, S&D) will be weighing heavy on everyone’s mind. As a trader whether you are long or short – you may want positions a little closer to even ahead of that day, it tends to be a big one.
Corn 1 to 2 cents lower
Soybeans 4 to 6 cents lower
Have a great day!