Morning Comments 12/31/2012
Monday, December 31, 2012, 8:13 amSubmitted by: Kyle Lehman
Markets are lower this morning as we round out the year. A few hours remain until we sprint off the fiscal cliff. Instead of compromising on proposals issued by the house it seems President Obama was too busy issuing an executive order to end the pay freeze on federal employees. The pay raise will be roughly a 1% increase and cost an estimated $1bln/yr. With no progress seen happening today as far as the fiscal cliff, expect trade to continue position liquidation. Friday’s USDA hogs and pigs report came in above expectations at 100% of LY. Despite the high feed costs producer liquidation has been minimal over the course of 1 year. USDA announced another sale of soybeans this morning to an unknown destination for 140K mt.
Precipitation in the western belt and southern plains have provided some relief to wheat markets even though more precip is still needed. It’s been a while since we have talked about South American weather which usually means things are good. The only area of concern in South America is the north east which continues to see above average temps and below average precip.
Markets will be open until the normal 2:00 close and will not reopen until Wednesday at 9:30 AM.
Corn down 3c
Beans down 15c
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