AM Comments 1/5/16
Tuesday, January 5, 2016, 8:01 AM
Submitted by: Joel Pudenz
They say first impressions are extremely important – and yesterday’s market performance didn’t impress many. Corn closed down 7c, soybeans were down 8c, and wheat traded 12c lower. Today is starting off on a better foot with corn up 2 ¾ c and soybeans are trading 5-6c higher. Outside markets are playing a mostly bearish tone. The DOW closed 276 lower yesterday and is traded slightly lower this morning. Crude oil traded as much as $1.35/barrel higher yesterday, but lost nearly $0.30/barrel by the close – it is trading steady at the moment. The Dollar has quietly put in five consecutive positive closes and livestock (particularly cattle) markets have bounced off recent lows.
All-in-all, without any major supply interference, the world demand picture is too lethargic to burn through current world grain supplies. As we’ve seen in the U.S. this year, the market needs to do some work to move grain supplies around a bit (Midwest vs. Eastern Corn Belt), but the market doesn’t show much concern with grain supplies being ample enough to meet end-users’ needs.
Corn up 2-3c
Soybeans up 5-6c
Have a great day!