AM Comments 01/08/13
Tuesday, January 8, 2013, 8:10 amSubmitted by: Dustin Weiner
Good morning!
It is a quiet trade so far today as traders sit and wait for the USDA’s Stocks and Production report due out Friday morning. The outside markets are natural to a little bearish this morning with the dollar stronger.
Weather is still a non-factor, maybe a touch bearish – no weather issues to speak of yet in South America and slowly but surely parts of the US are regaining soil moisture. The China National Grains and Oils Information Center is suggesting that with China’s economy starting to heat up their need for commodities will follow suit. Dec soybeans imports are expected to be over 5.5 mmt – thanks to improved crush margins. (It was 5.4 mmt last year and 4.2 mmt in Nov). If the Chinese economy stays strong it may be able to help support soybeans prices – even with the large harvest looming in South America.
The index funds are due to start their rebalancing today – which may make some commodities start to move independent of others. Overall we expect a choppy trade to persist through the rest of this week – at least until we get to Friday’s 11am report when all bets are off.
Currently
Corn is steady to up 1 cents
Soybeans are 1 to 3 cents higher
5-day Precip Map:
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