AM Comments 12/12/12
Wednesday, December 12, 2012, 8:47 amSubmitted by: Dustin Weiner
Good morning!!
Our markets are steady to lower this morning on little news. The grains appear to be acting opposite of the rest of the market as the dollar weakens while the financial markets and most other commodities are higher. I think our corn and soybean markets are just running into a little fund selling as the funds are liquidating their longs, maybe taking profits as the year winds down (and the fiscal cliff gets closer).
There were rumors overnight of China buying a couple cargoes of U.S. soybeans. This has pushed both the PNW and gulf basis to new highs. With South America’s harvest coming in Feb/March this basis rally could/should be short lived. Corn basis at the gulf is still soft, to put it nicely. New export business is lacking and corn may be slipping back into a trading range until we get new USDA data in early January.
Recent rains have relaxed a few of the barge restrictions on the lower Mississippi River, restrictions are still in place between St. Louis and Cairo, IL which is where the bulk of the issues reside.
Currently
Corn is steady to 1c lower
Soybeans are down 6 to 9 cents
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