AM Comments 04/10/13
Wednesday, April 10, 2013, 8:17 amSubmitted by: Dustin Weiner
Good morning!
The USDA will be giving us their April S&D report at 11am this morning. The market will likely be chopping around waiting for that for the next couple hours. The line item in that report that traders will be watching closely is the feed usage number. The quarterly stocks number from a couple weeks ago indicated feed usage in the second quarter was 30% below last year’s pace… will the USDA also reflect that conservative rate? We will be a lot smarter after 11am. If the report is friendly, it may give farmers an opportunity to sell old and new crop corn/soybeans as “normal weather” could still be bearish long term to prices…
EAI will release their weekly Ethanol production and stocks numbers today as well. Traders are expecting ethanol production to increase, with stocks decreasing. Ethanol margins have had four straight weeks with positive margins – some of the best margins since 2011. This helps support the thought that production will start to ramp up.
Opening calls
Corn steady to 1c higher
Soybeans steady to 1c lower
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