AM Comments 01/15/16
Friday, January 15, 2016, 7:01 AM
Submitted by: Dustin Weiner
Crude oil is once again acting as an anchor on the market, this morning crude oil fell another 5%, dipping back below $30 a barrel into 12-year lows. I’m sure many of you have already seen a crude oil chart pop up on the news, but I attached a cardinal & gold chart to the bottom of these comments to help you put into perspective the price of crude oil… As far as other outside market influences, it isn’t pretty there either as world equities (led by the Chinese equites tumbling further into a bear market) fell sharply last night. It appears that this will leak into US financials today also as the Dow is called lower (over 300 pts!).
Overall as you can imagine - the key inputs today are coming from the outside markets. If there are any fundamental corn/soybean news stories being talked about – they involve export shipments. There have been cargoes of corn and soybeans shipped out of the US which has surprised the market as we have been uncompetitive for so long. However, it appears to be operationally driven... Boats have been sitting outside of South America unable to load due to not only the large amount of sales they have yet to ship (oversold their capacity perhaps?), but also due to the rains they are experiencing down there (they can’t load boats in the rain). So, a few vessels were switched to the US to keep them moving which has spreads firming as well as a few basis levels helped out in part by the lack of farmer selling.
*** FYI there will be no markets on Monday in observance of Martin Luther King Jr. Day *** (trading will resume Monday night at 7pm)
Soybeans 5 to 10 cents lower
Have a great day!