AM Comments 03/01/13
Friday, March 1, 2013, 7:38 amSubmitted by: Dustin Weiner
Good morning!
Our markets are weaker – with most of the reasons coming from outside market influences. So far this morning we have the $US sharply higher, crude oil and most commodities are lower and the DOW futures are also lower. This sequester has some of the investment money spooked a bit, making today somewhat of a “risk-off” type of day.
Overnight China released 1.285m MT of wheat and 100k MT of rapeseed oil out of their reserves (meaning – they sold it). This would have a bearish effect on our markets (wheat -> corn and rapeseed oil -> soybean oil) but it feels like a lot of this was already in the market thanks to rumors floating around earlier in the week. It is a little interesting to see China on the newswire as a seller not a buyer, but the markets are shaking it off - wheat is back to trading steady as of right now.
Even with the down market today, nearby corn and soybean spreads are trying to hang in there, which reflects strong (bullish) fundamentals. In other words – a recovery today would not be overly surprising.
Currently
Corn is down 1 to 3 cents
Soybean are down 10 to 12 cents
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