Morning Comments February 21, 2017
Tuesday, February 21, 2017, 8:02 AM
Submitted by: Landus Cooperative
At the 7:45 a.m. pause, current trade shows corn trading on a two and half cent range with beans mixed but mostly higher. Despite carryover pressure from short covering and weakness in the charts on Friday, corn and soybeans look to start this morning up a few cents. The Brazilian bean harvest continues to progress at a very rapid pace with yields better than most sources had been forecasting. They are also seeing great weather with sunshine and beneficial rains moving through the country. The corn market will be closely monitoring Brazil’s second-crop corn production as it starts to enter a more critical stage. The corn trade is also paying close attention to headlines surrounding Mexican officials making trips to South America to widen their net for corn purchases.
The dollar index is firmer this morning and crude oil is 1.50% higher. The interesting thing about the rally in crude oil is that calendar spreads are also firming, indicating that the whole curve is firming (rather than just the front end). Weather in most crop growing points looks favorable the next two weeks.
Corn up 1-2 cents
Soybeans up 3-4 cents
Have a good day!