AM Comments 02/25/13
Monday, February 25, 2013, 7:41 amSubmitted by: Dustin Weiner
Good morning!
The trade overnight has been mixed with both corn and beans trading both sides of Friday’s close. The outside markets are a positive influence so far today with the $US working lower while US stocks and the majority of commodities are higher.
Last week our markets ran into a brick wall of fund selling as the technical analysts were seeing sell signals in the charts. The overall trend in corn/beans/wheat is down and if that trend is going to reverse, it may need to be led by the cash markets and spreads (which were both quiet Friday and quiet so far this morning).
Fundamentally… old crop corn and soybean supplies are tight, now the big question out there revolves around South America and how quickly they can get their soybean crop to port to satisfy the world’s needs. If Brazil’s shipping pace slows further, China has a couple of options. They can either A) switch purchases to the U.S. or B) draw down their own reserve stocks of soybeans. Both of those scenarios would be bullish soybeans. All eyes are on Brazil port operations and weather for now…
Currently
Corn is down 2 to 3 cents
Soybeans are down 1 to 2 cents
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