Morning Comments 1/14/2013
Monday, January 14, 2013, 8:57 amSubmitted by: Kyle Lehman
Markets are higher this morning on little news. The higher corn market can be contributed to follow through buying from Friday’s S&D report combined with the lack of farmer selling. Beans are higher on growing drought concerns for the southern part of Brazil. The US this past summer can be a good example of what one small timely rain can do with the bean crop and trade will be watching these areas closely for that timely rain to relieve concerns. The USDA announced yet another soybean sale to China of 120,000 tons for old crop. NOPA crush released this morning indicated 159.89 million bushels of soybeans were crushed in the month of December. Processors continue to crush at high rates as this was the 2nd highest December crush on record.
As previously noted the southern part of Brazil and northern part of Argentina are a growing concern as they continue to see below normal precipitation combined with above 90’s temperatures. The rest of Brazil has seen good amounts of rain which has delayed harvest but shouldn’t be much of a hindrance. I know it seems redundant but once again the Eastern Corn Belt continues to see rains while central US misses out (3 day precip map below). Last week’s drought monitor showed the eastern corn belt nearly fully recovered from the drought and expectations for tomorrow’s drought monitor is to confirm sub-soil moisture in the east has returned to normal levels.
Outside markets are slightly friendly with crude, gold, and equities all trading higher.
Corn up 13
Beans up 24
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