Monday, December 10, 2012

AM Comments 12/10/12

Good morning!

Our markets are weaker today and the outside markets are pretty quiet.  Tomorrow morning the USDA will release their December S&D report.  The trade is estimating the 12/13 corn carryout to bump up to 659mb, it was 647mb last month.  They are estimating the 12/13 soybean carryout to shrink back down to 130mb, it was 140mb last month.  Both of these adjustments are due to perceived demand changes.  This report will give our markets direction into the end of the crop year, so it is closely followed.  You can expect today’s (and tonight’s) trade to be choppy as traders even positions up prior to the 7:30am release of USDA data tomorrow.

Weather… Argentina is warming up (into the 90’s) which will help dry out some of the flooded/wet areas.  Late season soybean plantings should start back up again down there.  In the U.S. the weekend storm brought moisture to most of the corn belt and finally created some snow cover for the winter wheat crop in South Dakota which got off to such a poor start.  Both of these weather stories are adding a little weakness to the grains.

Currently:
Corn is down 7 to 8 cents
Soybeans are down 7 to 10 cents

Have a great day!
Dustin Weiner

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