AM Comments 03/20/13
Wednesday, March 20, 2013, 8:02 amSubmitted by: Dustin Weiner
Good morning!
Our markets are starting off higher this morning as the corn market continues its move to the upside. Soybeans are also higher this morning, yesterday was the 6th day in a row that soybeans closed lower – so a little bounce in the market is probably needed.
For the most part, the old crop corn and soybean markets appear to be trending in opposite directions. Corn is gaining strength from strong domestic demand thanks to good ethanol margins. Soybeans are weaker on poor export demand – China has been cancelling large chunks of soybean purchases they had on with Brazil, because of their poor logistics, and doesn’t appear to be buying them back (yet). It is assumed that they will just buy them back from South America later in the crop year. Domestic demand for soybeans is still strong, which is keeping soybean basis firm, although U.S. crush plants have seen their margins deteriorate lately.
The weather forecast for the U.S. looks to remain cool and wet which – believe it or not – is starting to get a few people nervous about the timing of corn planting.
Currently
Corn is 2 to 3 cents higher
Soybeans are 6 to 9 cents higher
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