Morning Comments January 25, 2017
Wednesday, January 25, 2017, 2:01 PM
Submitted by: Landus Cooperative
Markets slightly lower in the overnight session with the weakness coming from follow through pressure from yesterday’s market. Weather conditions continue to improve in South America, particularly in Argentina (putting pressure on the soybean market). Yesterday the corn market closed weaker. The corn market broke through the 200-day moving average, but failed to hold it and turned lower (and formed a “key reversal”). Funds are still engaged in some profit-taking. The new administration signed an executive order yesterday approving the Keystone and Dakota pipelines, improving access to oil & energy reserves in Canada and North Dakota.
Brazil’s bean harvest is moving along nicely. The soybean market did get some good export news yesterday with the USDA showing a sale of 103,000 MTs of old crop beans and 60,000 MTs of new crop beans (sold to unknown destinations). Mexico also bought some old and new crop beans. This comes as a surprise to the trade given the progress in Brazil. However, Brazil beans are priced roughly $.17 above the U.S. beans for February and are only $.04 below the U.S. for the March time period.
Outside markets are mixed to our commodity space with the dollar trending lower during January (coincides with rallies in corn and soybeans), crude is steady, and the stock market is making new highs.
Corn- penny lower
Beans- 4 cents lower
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