AM Comments 2/9/16
Tuesday, February 9, 2016, 8:02 AM
Submitted by: Eric Kist
Quiet, low volume trade continues ahead of today’s USDA report, which is due out at 11 AM. Corn traded a narrow three cent range overnight, and is two cents lower heading into today’s session. Similarly, soybeans also traded in a three cent range overnight, and looks to start the day mixed.
This month’s rendition of the USDA’s Supply and Demand report is expected to be relatively uneventful, as carryout numbers for corn, soybeans, and wheat are all expected to increase slightly – less than 10 million bushels each, mainly due to weak export demand. The funds have been sellers over the past week in anticipation of today, and as such have re-built sizeable short positions (and consequently both corn and soybeans have posted four consecutive days of lower trade). While not expected, any bullish changes shown in today’s report could lead to a short-covering rally.
Outside markets appear to be a mixed input so far, as world equities and crude oil are trading lower again, pressuring commodities. However, the US $ is also weaker this morning, which adds a touch of support.
Corn: 2 lower
Beans: Mixed to 1 lower
Have a great day!