Morning Comments 3/27/2013
Wednesday, March 27, 2013, 8:21 amSubmitted by: Kyle Lehman
Markets are quiet this morning as today is the last trading day prior to USDA’s release of quarterly stocks and prospective plantings. Nothing has changed in terms of expectations for tomorrow’s report. Trade is expecting bullish old crop corn stocks which isn’t a big surprise with record basis levels confirming their feeling. New crop on the other hand seems to have a bearish tone with outlook showing big acres and improved weather conditions despite December corn gaining 30 cents the past week due to concerns for planting delays. Weekly ethanol data is set to be released this morning with traders expecting to see a slight increase in production with improved profitability and idled plants being turned back on.
Export delays in South America still remain a problem as the wait time for vessels is estimated around 60 days. With Chinese hog profitability at the lowest point in several years it may be unlikely they will switch vessels to the US as demand for soybeans/soybean meal slips off. Oil World cut South American bean production estimates 2.2 MT from last month.
Outside markets are bearish with the dollar trading higher while crude and equities trade lower.
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