AM Comments 02/26/13
Tuesday, February 26, 2013, 8:14 amSubmitted by: Dustin Weiner
Good morning!
Our markets are starting off mixed, with corn trading higher while soybeans are lower. Corn strength is showing up in the nearby months, as spreads continue to strengthen – due to a strong domestic market as well as a lack of farmer selling.
Soybeans have been smacked by a good sized amount of fund selling the last few days. We haven’t heard much out of China this week - which has taken the luster off of nearby soybean values. Domestic processor basis is still firm as crush margins are strong. The lack of farmer selling in soybeans has the potential to strengthen the basis and spreads as we move forward. However as every day goes by, more and more beans become available in South America for export, which will eventually weaken the U.S. export values, collapsing the inverse.
Currently
Corn is 2 to 4 cents higher
Soybeans are 3 to 6 cents lower
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