AM Comments 02/11/13
Dustin Weiner
Good morning!
The markets continue to press lower – following the
trend set by Friday’s post-report selling spree in soybeans. Traders
were disappointed with the production estimates in South America
(Argentina’s sb crop not hurt as bad as thought and
Brazil’s sb crop bigger than thought) and proceeded to take profits and
sell.
The corn market has been slipping lower at a pretty
steady rate since the first of the month, now trading nearly 40c lower
than the close on Feb 1st. This break in prices has helped ethanol plant margins immensely as some plants’
margins are getting back to near or above “break-even”.
It could be a choppy week this week as Chinese
markets are shut down all week for the New Year Lunar Holiday. Brazil
is also down for the Carnival Holiday. This means that with a thinner
trade the markets can easily get overdone to both
the upside and downside.
Currently
Corn is 2 to 4 cents lower
Soybeans are 18 to 20 cents lower
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