PM Comments 01/02/13
Wednesday, January 2, 2013, 3:32 pmSubmitted by: Dustin Weiner
Good afternoon!
This morning our markets were engulfed with enthusiasm over Congress’ ability to avoid falling off the fiscal cliff – but that quickly wore off as both corn and soybeans closed lower. The financial markets stayed firm as investors across the country breathed a collective sigh of relief (and in turn bought stocks). There were a few rumors today that some of this new money getting thrown into the financial markets was pulled from commodities – which could explain the sell-off our corn and soybean markets experienced.
Fundamental news was lacking today, South American weather is still a non-event which does nothing for the bean bulls. If you are hoping for a big rally in soybeans, the market will probably need SA to have a weather issue. SA harvest gets closer by the day which is slowly grinding away risk, which is in turn is pulling ‘risk premium’ out of the market. The USDA will be coming out with their quarterly stocks report along with their S&D report next Friday (Jan 11th). This will be our next chance to trade fundamentals for both corn and soybeans.
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