AM Comments 02/01/16
Monday, February 1, 2016, 7:02 AM
Submitted by: Dustin Weiner
Softer corn/soybean markets to begin the week, following suit with the softer tone in the outside markets. China released some news overnight showing their PMI (a manufacturing index) declined again for the 6th consecutive month which has some markets on the defensive. The Commitment of Traders report from Friday showed the funds weren’t quite as short as thought in corn – which is a little bearish. Also technically some think that the positive price action from Friday might have a been a little overdone, which could also be causing the pullback today.
Generally speaking, corn and soybeans have remained inside the recent ranges (for reference, Friday’s closes seem to be near the top end), seemingly treading water waiting for new fundamental news. As you can imagine, key information will be available relatively soon: acreage estimates, spring weather, crop insurance prices, etc. etc.. This month will really just bring two main pieces of data: the updated Feb S&D along with the USDA’s Outlook Forum. Assuming we get through those without major surprises, we could hang in this range until we start watching extended weather outlooks for the spring…
Corn 3 to 4 cents lower
Soybeans 4 to 5 cents lower
Have a great day!