AM Comments 1/22/16
Friday, January 22, 2016, 8:01 AM
Submitted by: Eric Kist
We’re seeing higher markets across the board as we enter the office this morning, as China’s stock market shot higher overnight, and crude oil is up $1.50/barrel, which is nearly 5% of its suppressed contract value. The Chinese vice president announced last that the Chinese government will continue to intervene in the equity markets to ease the shock of the country’s slower than expected economic growth. US equities are piggy-backing off of the Chinese markets, and are set to open 1.5% higher this morning. The European Central Bank has also indicated that it may increase its level of economic support of the Eurozone in the near future, which also lends support to higher world markets.
Weekly export sales released this morning were positive, with corn sales reported above expectations, and soybean sales near the top end of the range. Rumors that China is interested in stepping in and buying both US corn and soybeans is also providing support for our markets. For the week, March corn futures are currently up 6 cents, and March soybean futures are up 4 cents.
Corn: 3 higher
Beans: 6 higher
Have a great day!