AM Comments 1/6/16
Wednesday, January 6, 2016, 8:01 AM
Submitted by: Joel Pudenz
Opening calls are widely negative across most domestic markets this morning. Corn, soybeans, and wheat all showed red on the screen to start the morning (but corn and soybeans have since bounced back to even). Crude oil made new lows overnight, continuing to drag energies lower (side note: Saudi Arabia and Iran relations are decomposing, which would’ve been a largely bullish input in the past. However, with the supply glut in the U.S. and large stockpiles built, Iranian and Saudi influences on the market have dwindled). Equities aren’t providing any silver lining either. The DOW is showing anther 300 point route this morning. Cattle futures are trading lower this morning while lean hogs are trading higher.
Our next big input is the notorious January S&D/Quarterly Stocks report due out at 11AM next Tuesday. It’s obviously hard to say what numbers the USDA will publish, but most feel the carries for both corn and soybeans could grow due to lackluster export business.
Corn up 1c
Soybeans trading steady
Have a good day!