FC Morning Grain Market Commentary for 4/2/2014

AM Comments 04/02/14

Wednesday, April 2, 2014, 8:16 am
Submitted by: Dustin Weiner

Good morning!

May soybean futures made new highs last night, falling just shy of $15.00 on the board.  Corn and wheat prices didn’t fare as well with corn down around a nickel and wheat down around a dime.  The soy complex rallied yesterday and last night on news that the Senate is trying to bring back the $1/gallon biodiesel tax credit.  The House is of course on the other side of it – their bill aims to keep the credit as-is (expired). 

Basis values were weaker at the U.S. gulf yesterday in both corn and soybeans due in part to heavy farmer selling (thanks to the futures rally) and cheaper barge freight.  Also affecting bean basis is the continued talk of soybean imports from South America.  Imports into this US aren’t surprising, they are in fact needed.  The Eastern U.S. can and will import a good amount of soybeans (they did so last year), but if you look at the image to the right, you will see a loaded soybean vessel headed to NOLA of all places.  High prices cure high prices…

 

Outside markets are mixed with Crude Oil lower at this time (DN 52 @ 99.22) along with a lower US Dollar (137.82 vs. Euro) and the US stock market is higher (UP 19).  The much anticipated U.S. Jobs report will be released Friday. 

Opening Calls

Corn down 4 to 6 cents

Soybeans 2 to 4 cents higher