AM Comments 04/03/13
Wednesday, April 3, 2013, 8:07 amSubmitted by: Dustin Weiner
Good morning!
Our markets are mixed this morning with corn trading steady to better while soybeans are weaker. A new strain of bird flu has been discovered in China that has shaken up the soybean and soybean meal futures markets over there. Vietnam has already banned imports of Chinese poultry because of it. There are stories out there of a handful of deaths (up to 7) being blamed on this bird flu (I haven’t seen anything officially confirmed on that). If true, and China’s demand for soybeans/soybean meal is lowered – this bearish tone in soybeans could hang around for a while.
Corn… with this large drop in flat price, there are reports out there that U.S. corn is now competitive in the export market – mainly China. This “threat” of new demand could/should help the corn market form a bit of a bottom in here. Make no mistake though, last week’s stocks report was a game changer for corn. The USDA’s S&D report next week will be very interesting as we wait to see how the USDA projects demand for the rest of the crop year (and next).
Weather… the 6-10 day forecast for the Midwest is kind of a mixed blessing as we are projected to see normal to above normal precipitation... Good for the eventual recovery on the drought map, but not good for timely planting.
Currently
Corn is 1 to 3 cents higher
Soybeans are 5 to 10 cents lower
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