AM Comments 02/20/13
Wednesday, February 20, 2013, 7:45 amSubmitted by: Dustin Weiner
Good morning!
After soybeans rallied 45 cents yesterday – the markets continued to push higher overnight as soybeans are currently up double digits once again. The story? If you recall - the Chinese were on holiday all of last week (Lunar New Year). Well, when the markets opened back up Tuesday the Chinese were ready and waiting. Currently China has great crush margins on soybeans – their problem is they can’t get em as fast as they want. There is currently a 35-45 day wait for vessels to get loaded in Brazil. So because of these strong margins they are willing to come in a pay a little more for beans and buy from the United States. THIS is what caused our rally yesterday. THIS is why people are bullish beans because the balance sheet here in the U.S. shows that we don’t have extra beans to spare and China is hungry.
Corn on the other hand has been a dog. It couldn’t close higher yesterday even with beans acting so strong. So far today it is just a shade higher. The story on corn is that exports are SO poor that traders are having a hard time finding reasons to move prices higher. Rallies are quickly sold. The bulls would like to make the argument that domestic demand is improving and actually strong. The problem is that we can’t really see domestic demand until we get another stocks report which is due out March 28th.
FYI March 28th is huge. We get our quarterly stocks report (a measure-up of bushels throughout the country) AND our Prospective Plantings report (acres). Put it in your calendar – set a reminder up in your phone. 11am. It should be interesting.
Currently:
Corn is steady to 2c higher
Soybeans are 14 to 18 cents higher
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