Morning Comments February 15, 2017
Wednesday, February 15, 2017, 8:02 AM
Submitted by: Landus Cooperative
Stock market looking to set another record high today. Weather conditions are favorable for soybeans in Brazil and Argentina weather looks good for both corn and beans. Producers in South American are under-sold in respect to previous years, which may bring some last minute soybean business back to the U.S. This time last year, funds’ aggregate position in the commodity space were net short 257k. As of Friday, they were net long 387k contracts. Much of the new open interest we have seen the last 30 days has some traders leery about prices pushing higher from here.
Corn prices remain near multi-month highs. Mexican government talking about switching from U.S. corn to South American corn. Speculation continues about how many acres will be switched over to beans this spring. Current corn:soybean ratio sitting at 2.55, which historically favors soybeans.
Talk continues of China demand tapering off for soybeans and speculation roars on about acres planted this spring. NOPA crush data today will be released today. Planting weather will be big key in how many acres are actually switched to beans this spring.
Corn down 1c to 2c
Soybeans down 1c to 2c