Good morning!
Both corn and soybeans were higher last night on very little news. The $US is sharply lower which is helping not only our corn and soybean markets find strength – but gold is also rallying (while equities are weaker). China’s PMI strong indicator of overall Chinese economic strength) for January slipped down below 50 – which suggests contraction in their economy rather than the growth that the market has been used to. This is the lowest reading in 6 months and no doubt has some people nervous regarding not just China’s, but the overall world economy.
The soybean futures market has taken a big hit lately due to rumors about vessels destined for China being switched away from the US towards Brazil. While those rumors have not yet been officially confirmed, soybean basis at the U.S. gulf has dropped sharply which gives a little credibility to the idea that sales are being cancelled.
The corn market is hovering right around it’s 10 and 25-day moving averages. Steady demand and slow farmer selling should keep this market from falling out of bed (for now). This cold weather is not helping the cash market as ice problems delay river traffic and the farmer stays inside his house/shop.
Opening Calls
Corn 1 to 3 cents higher
Soybeans 4 to 6 cents higher
Have a great day!
@fccoopgrain
Dustin Weiner
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