AM Comments 03/04/16
Friday, March 4, 2016, 8:03 AM
Submitted by: Dustin Weiner
Our corn and soybean markets were firmer last night, led by soybeans which leaked into double digit gains earlier this morning. While many are calling this a short covering rally, following through from a little strength yesterday and firm outside markets today – you can help but notice what the Brazilian currency (the Real) is doing, I attached a chart below. Over the past three days the Real has jumped just over 6%, up almost 3% this morning and the main news story I can find involves Brazil’s ex-president whose home is being raided in a corruption investigation. Who knows for sure what is really going on, but a stronger Real in theory helps the US become more competitive in the export market – in particular on soybeans. The only problem is it may be too little too late as our export window has all but closed with the SA harvest hitting the market.
No change in US weather that I can see – both the 6-10 and 8-14 day forecasts look above normal for temps. While this is bearish when thinking about an early spring planting season – it is viewed as little friendly to prices today as the Plains start to dry out.
Overall today it appears we are in “risk-on” mode as equities, energies and most commodities are all starting the day firmer.
Corn 2 to 3 cents higher
Soybeans 7 to 10 cents higher
Have a great day!