Morning Comments 3/13/2013
Wednesday, March 13, 2013, 8:34 amSubmitted by: Kyle Lehman
The soybean market is under pressure this morning trading 14 cents lower while corn trades steady to 2 lower. Soybeans are trading lower on a couple of newsworthy pieces. News that China port inventories are growing reducing the pressure on South American logistics and reduces the chances of vessels being switched to the US is providing most of the bearish feel this morning. Chinese hog profitability has fallen below breakeven which has traders thinking soybean demand may back off if hog inventories begin to shrink.
Informa has recently backed off their estimate for 2013 new crop corn plantings. In January they had an estimate of 99 million acres and yesterday the head chief announced their feelings are more in the line of 97 million acres and possibly could be as low as 95 million. Bean acres are felt to be 80 million, up from 78.8 as the recent markets have made new crop bean production more appealing.
10 day weather forecast is benign as the Midwest is expected to see normal precipitation with below normal temperatures. South America is expected to see below normal precip over the next 10 days which will allow harvest to progress without delays.
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