Morning Comments February 16, 2017

Thursday, February 16, 2017, 8:02 AM
Submitted by: Landus Cooperative

Overnight Trade:  Corn steady to 1 cent lower and beans 1 to 2 cents lower. 


The corn market rallied yesterday as new buying continued to flow into the futures market. March corn closed higher at $3.7875 while the December futures closed higher at $4.0275. Closing above $4.00 was a key milestone for Dec17 corn futures. Ethanol usage has been reported as declining and there have been no new U.S. corn sales reported.  The weekly export sales were released at 7:30 this morning. Old crop corn sales were on the weaker side, coming in 13% below the low end of estimates. New crop sales were estimated to be between 0 and 5.9 mln bu. Actual sales were 11 mln bu.


March soybean futures closed higher yesterday at $10.6125 while  November soybean futures closed at $10.3425.  Reports out of Brazil show soybeans yielding at record levels.  So far, record yields in Brazil are being reported as enough to offset any flooding damage in Argentina. Weekly export sales this morning were estimated to be between 18 and 27 mln bu. Actual sales were well above estimates at 32 mln bu. for old crop soybeans.


Outside markets are neutral to friendly with the dollar a touch weaker and crude mildly firmer. Another world currency that is relevant to our soybean space is the Brazilian Real. The Brazilian currency has been on a consistent rally since December 1st. This has made the Brazilian soybean producer/seller tight-fisted with soybean ownership. Similarly to our markets, a firm currency makes commodities for export more expensive to international buyers. The relationship of the Real to the Dollar is being closely watched as Chinese and other Asian buyers seek soybean ownership in the coming months.


Have a good day.


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