AM Comments 03/07/14
Friday, March 7, 2014, 8:19 amSubmitted by: Dustin Weiner
Good morning!
The funds were active again last night and after a quiet opening, the soybean market took off as funds added to their long positions. The funds are within 15-18k contracts of their largest ever long soybean position, going back to the drought of 2012 (it will be ugly when this goes away someday, right?). Corn also saw nice gains last night as May corn on the CBOT broke the $5 mark earlier this morning (and has since came down off of that).
The soybean story is an easy one to tell as the projected carryout for this summer continues to shrink in the mind of the trader. We seem unable to ration export demand, and domestic crush margins are still strong – it now feels like the US will need to import a fair amount of beans this summer to avoid a “zero” for a carryout. Chinese crush margins improving overnight just added fuel to the fire (and fund longs to our market).
Outside markets are higher with Crude Oil higher at this time (UP 53 @ 102.09) along with a lower US Dollar (138.63 vs. Euro) and the US stock market is higher (UP 82).
Opening Calls
Corn 2 to 4 cents higher
Soybeans 10 to 20 cents higher
And oh by the way – the big S&D report is out Monday. Details for trade guesses at the below:
No comments:
Post a Comment