Morning Comments February 2, 2017
Thursday, February 2, 2017, 2:02 PM
Submitted by: Landus Cooperative
Phil did see his shadow this morning, so 6 more weeks of Winter…
Yesterday’s rally was supported by front-end money flow and fund buying, but there was a plethora of inputs that contributed to the stronger close. Tensions are flaring once again in Ukraine as artillery fire was reported over the weekend. Growing concerns over the world’s sugar crop and a steady decline in the dollar both gave the bulls more to run with. Nearby beans closed above their 50 day moving average, adding strength from tech traders. Early reports out of Brazil indicate strong soybean yields.
The Chinese New Year wraps up today & tomorrow with the bulk of market participants coming back to work on Monday. Markets will focus their attention on export numbers this morning and weather forecast for South America. The soy complex will likely get some support from the strong soymeal exports reported this morning. As export business shifts from the U.S. to South American, we will need to keep our eyes open for any residual business that will stay with the U.S.
Corn 1-2 cents lower
Soybeans 3-4 cents higher