AM Comments 01/24/13 (revised)
Thursday, January 24, 2013, 8:45 amSubmitted by: Dustin Weiner
Good morning!
We have a cold front moving across Argentina today that has the bean market a little spooked. It is supposed to be light – anywhere from a tenth to just over a half inch of rain is expected. The extended forecasts for Argentina are mixed – with some calling for continued dryness while the GFS model looks wetter. This is causing profit taking again in beans as they are down double digits this morning. Long term outlook for Brazil looks wet – wet enough that there may be a concern regarding harvest delays in central and northern Brazil. This could have an impact on the U.S. gulf basis if boats are unable to get loaded.
The weekly export sales report is delayed till tomorrow because of Monday’s holiday but the USDA did announce this morning that another chunk of U.S. beans was bought – 510k mt to China for new crop and 113k mt to unknown for new crop. So far, this is keeping the bean market from carving out new lows as they have bounced 7c since the report (they were down over 22c just an hour or so ago)
China’s PMI was released this morning and is now up to a 2-year high – which signals continued growth in the country and can be viewed as friendly to most every commodity.
Currently
Corn is down 4 to 6 cents
Soybeans are down 13 to 16 cents
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