Wednesday, November 7, 2012

A.M. Grain Market Comments for 11/7/2012

AM Comments 11/07/12

Wednesday, November 7, 2012, 8:18 am
Submitted by: Dustin Weiner

Good morning!

As you are all fully aware – the election is over: four more years.  So far today that has put a damper on the outside market support that we benefited from in the “pre-election” trade yesterday.  The dow is down over 100 points, crude oil is weaker and the dollar is higher.  This is weighing on commodity prices today.

For the most part the grain trade is trying to idle along, waiting for Friday morning’s S&D report.  Production estimates for both corn and beans are all over the board but the general consensus is that projected ending stocks will remain relatively the same.  This is especially true in soybeans as the strong export demand will likely soak up any additional supply found by the USDA.  Current projections have soybean yield bumping up to 38.2bpa from 37.8bpa last month.

Generally this morning: the wheat market is stronger as stories of declining Ukraine and Russian wheat supplies continue to surface.  The soybean market is weaker because of both the $US rallying and thoughts of larger production numbers coming at us Friday morning.  The corn market is stuck somewhere in between, balancing stronger wheat prices and weaker soybean prices – trading both sides of yesterday’s close.

Currently
Corn is trading steady to down 1c
Soybeans are down 4 to 6 cents

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