Farmers Cooperative Company
Ames, Iowa
Good morning!
The USDA monthly S&D report was released this
morning and it was, well, boring. They didn’t change a single thing on
corn, leaving supply and demand the same as last month, showing the same
projected carryout as last month: 647mb. This
could be viewed as a touch friendly because the trade was expecting a bearish number but overall it is pretty neutral.
Soybeans changed almost exactly like we thought
they would, the USDA cut the projected carryout from 140mb to 130mb –
due to an increase in domestic crush. This is also friendly/neutral.
However, the Brazil and Argentina soybean crops
were left unchanged which could be bearish beans as Argentina was
expected to be down due to their flooding/planting issues.
The only other thing to read in this report came
from the wheat market, as it was bearish wheat (exports shrunk, pushing
carryouts up). This matters to you because corn has a hard time
rallying with wheat under pressure…
Overall: nothing to see here. Can you guess what
we get to concentrate on now? The outside markets. South American
weather. The fiscal cliff. How exciting! So far this morning the
outside markets are a little friendly as the dollar
is under pressure, SA weather looks good and the fiscal cliff is still
out there adding risk as Dec 31 gets closer and closer.
Currently:
Corn is down 3 to 4 cents
Soybeans are down 6 to 9 cents
Have a great day!
Dustin Weiner
@fccoopgrain
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