Morning Comments 11/23/2012
Friday, November 23, 2012, 8:35 amSubmitted by: Kyle Lehman
Good morning!
Our markets are called higher after the thanksgiving holiday on a few pieces of worthy news.
The biggest influence this morning is China’s PMI (purchasing manager’s index) has risen to a 13 month high of 50.4. Most analysts indicate the figure above 50 shows an indication of economic recovery which will provide support to our grain markets. The USDA reported 20,000 mt of soybean oil sold to unknown destination (usually China).
Over the past couple of days South America has seen anywhere from 1.5-3.5” of rain, most of which fell in already wet Argentina. The maps below show the 5 day forecast (top map) and the 7 day % of normal (lower map). Flooding is being reported in low lying parts of Argentina which just adds to their already existing planting delays. Argentine soybeans are 37% planted vs. 47% last year, Corn is 50% planted vs. 62% last year. Meanwhile parts of Brazil still remain dry but forecasts are calling for some timely rains. Another headline from South America is workers from 4 soy-processing plants in Argentina have started a strike demanding the usually higher pay and improved working conditions.
Reminder markets will open at 9:30 this morning and close at noon.
Opening Calls:
Corn: up 2-4
Soybeans: up 3-6
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