AM Comments 9.14.2016
Wednesday, September 14, 2016, 8:09 AM
Submitted by: Joel Pudenz
It was a relatively quiet overnight trade with corn currently sitting ½ cent off and soybeans even with yesterday’s close. Selling action continued through yesterday as the market digested the USDA report from Monday morning. Large crop forecasts are most certainly a piece of the conversation (read: big yields), but there is also a growing belief that when acres are reconciled with the FSA office on the October USDA WASDE (Supply & Demand Report), corn and soybean areas will grow. Any changes are likely to be minimal, but increases in acreage add to an already healthy/robust balance sheet. Until we get any firm ground to stand on, the market will be trading yield reports as harvest inches further north into the breadbaskets of Iowa/Illinois/Nebraska.
We will see the weekly energy inventory report from EIA – most expect a rise in crude inventories & a slight decline in gasoline inventories. It is interesting to note this report as last week we saw the largest decline in crude inventories (week-on-week) since 1999. Hurricane Hermine was to blame as many oil tankers stayed off-shore to stay out of the hurricane’s path. Crude oil is currently trading around $44.50 per barrel.
We expected a quiet/consolidated trade today as the market turns its focus from Monday’s S&D report back to yield reports from the field.
Corn – mixed to slightly lower
Beans – steady to slightly higher
Have a great day!
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