AM Comments 01/03/13
Thursday, January 3, 2013, 8:05 amSubmitted by: Dustin Weiner
Good morning!
Our corn and soybean markets are still under pressure this morning. Yesterday’s sell-off did some pretty severe damage to the charts, especially soybeans. This poor technical outlook has made it easy for the funds to lift some of their long positions and watch the prices erode. On top of that, the USDA announced this morning that China has cancelled another 315k MT of U.S. soybean purchases (just another form of lifting a long position). It appears beans could make a run at the November lows of $13.56 March futures.
The fundamentals are still pretty quiet for our grains with nonthreatening weather in SA and moisture in the 6-10 day forecast for everyone East of the Rockies. The Mississippi River is still sitting at near-historic low levels but they are making some progress in removing some of the rock formations near Thebes and Grand Tower. This doesn’t have much effect on the overall flat price for corn and soybeans, it is more of a basis/spreads/logistics problem.
No weekly export sales report this morning, it is delayed till tomorrow due to the holiday earlier in the week.
Currently
Corn is down 4 to 6 cents
Soybeans are down 12 to 16 cents
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