AM Comments 03/27/14
Thursday, March 27, 2014, 8:14 am
Submitted by: Dustin Weiner
Submitted by: Dustin Weiner
Good morning!
The USDA came out with their weekly export sales report this morning, and I read it as friendly to corn and neutral/friendly to soybeans. We had another strong week of sales in corn, total sales came in well above the average trade guess. Old crop soybean sales were tiny last week (less than half a million bushels net) but they weren’t negative - meaning no net cancellations which is supportive. Currently the U.S. has sold nearly 107% of what the USDA has pegged in their S&D (this equates to an approximate 100mb difference). It is almost getting too late to see cancellations out of the U.S. because with the vessels already sitting in line, it would cost big $$ to switch them to somewhere else. It is honestly easier/more cost effective for China to cancel purchases they have from Brazil and instead sell those boats into the Eastern U.S. (read: U.S. soybean imports are increasing, which is needed).
I don’t talk about livestock often but tomorrow’s hogs & pigs report has the potential to be a market mover because of PED – not just to the hog market (which has been rallying) but also for corn. Any reduction in feed demand of course bumps the bottom line corn carryout higher and is bearish to prices.
Opening Calls
Corn 1 to 2 cents higher
Soybeans 1 to 3 cents higher
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