AM Comments 05/01/13
Wednesday, May 1, 2013, 8:16 am
Submitted by: Dustin Weiner
Good morning!
Our markets were under pressure last night and are still
weaker this morning. The drop in futures prices is being blamed on hedge
pressure (farmer selling) and long liquidation (funds/specs selling).
The extended weather outlook may not be quite as wet as
forecasted yesterday which helps explain the sell-off in corn. Although… it is
the 1st of May and they are calling for 1-3” of snow for parts of
Iowa (mainly North and NW). This could eventually add support but the fact that
the system stalled over the Western Corn Belt means folks in the East should get
an extra day of planting.
For soybeans – China’s PMI came in lower than last month and
below expectations, indicating their economy is growing at a slower rate than
thought. China’s economy is of the utmost importance to soybean demand
projections. The world needs a strong Chinese economy for raw material prices
to rise.
Overall it could be a light volume day today as Europe, China
and other countries are out due to the May Day holiday. This could help explain
the violent moves we have seen in the night session.
Opening Calls
Corn down 7 to 10 cents
Soybeans down 15 to 25 cents
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