AM Comments 02/01/13
Friday, February 1, 2013, 8:16 amSubmitted by: Dustin Weiner
Good morning!
China was the topic of conversation last night as China’s Senior Ag official made the comment that China will continue to need global imports of grain to offset their demand. This may sound a little obvious to some, but nevertheless it pushed corn, soybeans and wheat all higher. On the flip side of the equation, China’s PMI was a little less than expected. The number still indicates growth in the manufacturing sector of China – just not as high of a rate as expected.
South American weather was also supportive overnight as uncertainty remains. The 6-10 day forecast remains below normal for precip and above normal for temps in Argentina. Brazil still looks pretty good however, and the U.S. export market basis was sharply weaker yesterday on the thought that export demand is starting to shift into Brazil. U.S. processors have backed off as well, due in part to what exporters are doing and also because farmer selling has picked up with these higher prices.
On a chart, the March corn futures have made new highs for the move – the highest they have been in almost two months. The next area of major resistance is the November high of $7.6750 on the board.
The outside markets are a bullish input this morning – the DOW is higher because the monthly jobs data was friendly. The $US is sharply lower, as low as it has been in over 5 months which supports all commodities.
Currently
Corn is 2 to 3 cents higher
Soybeans are 8 to 10 cents higher
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