AM Comments 12/18/12
Tuesday, December 18, 2012, 8:36 amSubmitted by: Dustin Weiner
Good morning!
Our markets are lower this morning – sharply lower in soybeans. The soybean market failed to close above $15 yesterday and that triggered some selling overnight. With the trade being awful thin (pre-holiday maybe) the market probably slipped lower than it normally would have, triggering more sell-stops. On top of that, the USDA reported this morning that China cancelled 300k mt of U.S. soybean purchases this morning which is adding to the weakness. The soybean traders are nervous that there may be a temporary break in the pace of sales to China, causing additional profit taking.
Another story that could be a touch bearish overall to grains is the U.S. weather. Parts of the Midwest and Plains have their first winter storm pointed at them – bringing 8”-15” of snow to some areas. This isn’t a drought breaker by any means – but if we are to turn the pattern wetter, we have to start somewhere.
The outside markets are actually friendly this morning, financials, gold and crude oil are all higher while the $US is lower. President Obama is starting to appear more willing to agree to a deal with Republicans regarding fiscal cliff talks.
Currently:
Corn is down 6 to 8 cents
Soybeans are down 20 to 25 cents
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