AM Comments 08/01/13
Thursday, August 1, 2013, 8:26 amSubmitted by: Dustin Weiner
Good morning!
The corn and soybean markets drifted lower last night as the weather forecasts turned a little wetter for the Western Corn Belt. The rain penciled in for today and tomorrow has also maybe slid a little further north into some of the rain deprived areas in Iowa, northern Illinois, and southern Wisconsin.
The USDA released their weekly export sales report and both corn and soybeans had better than expected new crop sales – which could lend support to prices today.
Outside markets… to start the month of August, crude oil is over $2/barrel higher, gold is higher, and the DOW is called higher – all of that is friendly, meanwhile the dollar is also higher which tends to be more bearish than bullish. There has been no indication from the Fed that they will be winding down QE3 anytime soon. Overall call the outside markets a bit of a friendly input today.
Other than that, it appears to be a quiet start to August. The cash corn and soybean basis markets are still trying to work a little higher – although it is important to note that as certain demand centers (whether it’s ethanol, soy processing or feed mills) get enough grain bought to get them to harvest (or at least close to it), they will no doubt be quick to take whatever premiums they are showing away.
Opening Calls
Corn down 2 to 4 cents
Soybeans steady to a little weaker
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