AM Comments 11/14/12
Wednesday, November 14, 2012, 8:24 amSubmitted by: Dustin Weiner
Good morning!
Our markets are higher this morning, led by strength in the cash markets. The basis at the gulf was quite a bit firmer yesterday for both corn and soybeans – at record highs for November. Low water levels on the Mississippi River along with a general lack of farmer selling due to the drop in futures prices has basis markets firm.
This morning there were a couple stories involving soybean demand that has made the soybean market into the leader to the upside today. First, NOPA crush numbers were released showing that we are domestically crushing more soybeans than we previously thought. Second, the USDA announced another bean sale to China, 120k MT. If the market is truly trying to ration soybean demand, they are doing a poor job of it.
South American weather is relatively unchanged since yesterday. Argentina looks to stay dry through the weekend to allow for soybean planting to continue but there are rains in the forecast for next week. Since the initial setback in planting conditions in SA, the planting season as a whole could be classified as just “ok” down there.
Currently:
Corn is steady to 2 cents higher
Soybeans are 12 to 16 cents higher
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