AM Comments 11/16/12
Friday, November 16, 2012, 8:11 amSubmitted by: Dustin Weiner
Good morning!
The soybean market is the leader to the downside today as news came out overnight that China cancelled 10 cargoes of U.S. beans. This pushed markets down into new lows for the move. It may be worth noting that this number may have already been traded. If you remember: last week’s export sales report was an extremely small number. That low sales number could have been due to these now public sb cancellations offsetting the sales for that week. Still, the world’s largest soybean importer is cancelling bean purchases? Yes that is bearish overall. The bulls will tell you that they will eventually come back into the market and buy them cheaper.
Other than that there isn’t much out there. SA weather looks unchanged and corn exports are still expectedly poor. Weekly ethanol production numbers were a little bearish, coming out slightly less than last week and down 10% from last year. We could see a little spill over support into our grains from crude oil, which is rallying a bit this morning due to tensions rising in Israel.
Currently
Corn is down 4 to 5 cents
Soybeans are down 10 to 15 cents
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