AM Comments 2/24/16
Wednesday, February 24, 2016, 8:02 AM
Submitted by: Eric Kist
Grains traded marginally lower again overnight after a poor performance yesterday. External factors have been the main driver in the markets for quite some time now, as fundamental news is scarce. Continuing with that trend, lower equities and crude oil are again pressuring the grain markets this morning. Crude oil markets have been swaying back-and-forth recently from discussions of OPEC limiting crude oil production, as rumors last week led many to believe a production freeze would be introduced. However, Saudi Arabia is now saying they are against the idea, and will continue to pump as before. Simply put, crude oil production is out-pacing demand, as world supplies continue to grow. Last week’s EIA supply report showed an all-time record supply of U.S. crude oil stocks, and that number is expected to grow again this week.
Fundamentally, news has been limited for corn and beans, but the two-day USDA Ag Outlook Forum is scheduled to begin tomorrow. It is expected the USDA will release acreage estimates on Thursday with complete supply and demand tables to be released on Friday, which should give the market something to talk about – at least for a day or two.
Corn: 1-2 lower
Beans: 1-2 lower
Have a great day!