Afternoon Comments 3/13/2013
Wednesday, March 13, 2013, 12:26 pmSubmitted by: Kyle Lehman
Soybeans are finding heavy liquidation this afternoon on rumors Brazil has eliminated a tax credit for domestic oil. This 4.5% crush tax credit if eliminated equates to 54 cents/bushel loss in margin (very bearish beans). Rumors have also started of China cancelling bean purchases.
Ethanol data this morning showed last week’s production for corn ethanol declined 8,000 barrels/day and ethanol stocks declined by 663k barrels for the week. Once again corn used for ethanol is gradually falling farther behind the pace of what is needed to reach the USDA estimate.
Outside markets are bearish with the dollar trading higher while crude and metals trade lower.
Corn down 5c
Beans down 20c
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