Morning Comments February 10, 2017
Friday, February 10, 2017, 8:02 AM
Submitted by: Landus Cooperative
In the last 48 hours we’ve been graced with three reports to digest. Conab released some updated South American crop estimates this morning and the main take away was an increase in the Brazilian bean crop (which USDA did not to recognize in the WASDE report yesterday). We also got an update to the weekly export sales report. Exports for corn were near projected numbers, wheat was at the upper end of estimates, and beans were at the lower end of estimates. The third report that came out was the USDA crop report – which was widely neutral to our grain space.
U.S. soybean supply was unchanged, as well as bean demand. Carryout was left at 420 million bushels, which traded as slightly bearish. World bean supply dropped by 2 MMTs, and demand was increased a touch. U.S. corn supply remained unchanged with demand increasing by an overall 35 million bushels. This reflected record grind in the ethanol sector. Ending stocks dropped only .2%- a very minimal change.
All-in-all, numbers were in line with estimates and expectations. Currently, grains are trading higher this morning. We continue to bump into stiff resistance for both corn and beans. March corn resistance at $3.77 and March beans at $10.65.
Corn 1-3 higher
Beans 7-10 higher