AM Comments 09/12/16
Monday, September 12, 2016, 12:09 PM
Submitted by: Dustin Weiner
Today is report day, the USDA will be out later this morning with their next look at the 16/17 S&Ds and our markets are trading mixed/weaker ahead of it. As I mentioned last week, the corn trade is looking for yield estimates today to fall short of what was presented in August which has kept a bid under corn so far in September. It wouldn’t be overly surprising if eventually we see corn production estimates slip – but I’d be careful assuming that that happens in today’s report. The soybean trade is somewhat opposite as a lack of weather problems in August has most feeling that the USDA could show increased production today.
Overall – while initial post-report focus will be on the yield/production numbers, the long term focus needs to be on ending stocks (aka carryout). The market needs to know how comfortable we truly are because if demand remains strong – any blip in US harvest/production OR South American planting (and eventual production) could tighten things up quickly, especially in soybeans.
So… for this morning it looks like we will float/drift around for a bit – likely spending most of the time lower in sympathy with the outside markets (crude lower, gold lower, stock market lower) until the report gives us direction – one way or the other.
Soybeans 3 to 6 cents lower
Have a great day!
2321 N. Loop Drive, Ste. 220 Ames IA 50010-8218
O: 515-817-2144 | C: 515-460-3228
This email is intended for the use of the person to whom it is addressed and may contain information that is privileged and confidential, the disclosure of which is governed by applicable law. Dissemination, distribution or copying of this information in an unauthorized manner is strictly prohibited. Sender accepts no liability for any damage caused by any virus transmitted by this email. If you receive this email in error, please notify the sender.