AM Comments 11/28/12
Wednesday, November 28, 2012, 8:33 amSubmitted by: Dustin Weiner
Good morning!
Our markets are a little lower today –taking a breather from the nice rallies we have seen over the last few trading sessions. Rumors yesterday regarding China purchasing soybeans appear to have been true as the USDA announced this morning a sale of 290k MT of US soybeans sold to China. Between this export confirmation and continued stress in the SA weather forecast soybeans should find some support on breaks over the short term. After all, we don’t appear to be rationing demand for U.S. soybeans at these price levels and the supposedly huge crop down in South America is anything but a guarantee.
The outside markets are on the defensive today. The fiscal cliff talks aren’t going away – this morning crude oil is lower, gold is lower and the financial markets are lower. This makes it hard for our commodities to find willing buyers, no matter what the fundamentals tell them.
Also the situation at the Mississippi River isn’t going away. We now have barge operators/shippers asking President Obama to declare a state of emergency – forcing the Army Corps of Engineers to keep the waterway open at any cost. This would likely mean they have to continue to release water from reservoirs on the Missouri River into the Mississippi (not normal for this time of year). It could also require them to go out into the Mississippi (south of St. Louis) and remove rock formations, etc. allowing deeper drafts.
Currently
Corn is down 3 to 5 cents
Soybeans are down 5 to 7 cents
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