AM Comments 12/06/12
Thursday, December 6, 2012, 8:42 amSubmitted by: Dustin Weiner
Good morning!
The USDA released their weekly export sales report this morning – soybean exports were strong while corn exports were once again pathetic. This has the soybean market higher while corn is lower. If you believe the rumors, China is still in the market looking to buy U.S. soybeans. This is helping the soy complex continue on the higher trend, soybeans have now rallied over $1.15 off their mid-November lows! At some point profit taking is to be expected.
As for corn… the futures market appears to have very little direction. $7.50 on the March futures contract seems to be a magnet – we haven’t been able to get too much higher or lower than that lately. Higher prices get the demand sector nervous while lower prices spur end-user buying. In long term fundamentals both the corn and soybean market will be looking at weather (South American first, U.S. planting weather second) and acreage intentions (officially released by the USDA in March).
Outside markets are a little negative this morning with crude oil lower and the dollar rallying. We are another day closer to this fiscal cliff and the politicians have yet to agree on much of anything.
Currently
Corn is down 3 to 4 cents
Soybeans are up 5 to 7 cents
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