AM Comments 02/24/14
Monday, February 24, 2014, 7:58 amSubmitted by: Dustin Weiner
Good morning!
The soybean market rallied again last night, now pushing to its highest levels since September. Generally speaking, there is nothing new in the soybean market. You can credit these recent rallies to strong world demand (which we already knew) and a little short covering by the end user (also reflecting strong demand and margins). If you want to, you could also talk about recent heavy rains in South America that are causing a few harvest delays as a catalyst for the higher move.
March is just around the corner and that means it won’t be long until we start talking more seriously about planting intentions of the U.S. farmer. Last week at the outlook meeting the USDA projected corn plantings this year to be 92ma and bean planting to be 79.5ma. Some fear that the overall acreage base could grow this year thanks to the recent high on-farm profitability seen across most of the belt. That of course would be bearish to prices if realized. The USDA comes out with their official “Prospective Plantings” report on March 31st
Opening Calls
Corn down 3 to 5 cents
Soybean up 8 to 12 cents
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