AM Comments 1/8/16
Friday, January 8, 2016, 8:01 AM
Submitted by: Eric Kist
Markets are making an attempt to bounce back from yesterday’s losses, in which corn, wheat, and crude oil all made fresh lows again. So far this morning corn is up 1 ½ cents, beans are 3 cents higher, wheat and oil and up nominally, and the US stock market is feigning a comeback from yesterday’s losses as well.
Despite being higher to start the day, the US $ is already posting a strong move higher today as well, and may just take all the steam out of the grain markets. The $ and US equities are getting a boost from a friendly US Jobs report that came in better than expected, along with a slight recovery in the Chinese Shanghai stock index.
Export demand continues to struggle, and it has been reported that a few Brazilian farmers are starting to harvest some early-planted soybeans. The thought is that soybean harvest down there is still a few weeks away from being in full swing, but generally speaking Brazilian beans tend to fill the pipeline beginning in February. The pressure US beans are facing now in the export market will undoubtedly be intensified shortly.
Corn: steady to 1 higher
Beans: 2-3 higher
Have a great day!