AM Comments 03/14/16
Monday, March 14, 2016, 7:03 AM
Submitted by: Dustin Weiner
The markets were mixed overnight after last week pushed corn priced just over 6c higher and soybean prices over 17c higher – mostly due to the funds lifting their large short positions, especially in soybeans (and wheat). Also helping feed the rally was that instead of getting the expected bearish news out of the USDA – they punted. This prevented the bears in the market from being able to push prices lower.
Our eyes are slowly shifting to the two large reports due out at the end of the month: the Prospective Plantings report and the Quarterly Stocks report. These will give us the last bit of direction before spring weather dominates the conversation. Of course, weather is already being talked about as some areas have begun to show signs of drying (map below) over the last 30 days. Also, corn has already been planted in Southern IL which means weekly Planting Progress and Crop Condition report discussions won’t be far behind. In regards to the drying pattern, the Southern Plains are the main areas being watched in the U.S. while Ukraine and Northern Africa are also reportedly drying out a bit. None of this means we should push the panic button, but it is something to watch as we move forward as rains (or lack of) for those areas could give price direction, up or down.
Corn 1 to 2 cents higher
Soybeans 3 to 4 cents lower
Have a great day!