AM Comments 05/15/14
Thursday, May 15, 2014, 8:05 AMSubmitted by: Dustin Weiner
At 7:30am today the weekly export sales report was released and it showed net positive soybean sales once again! Granted, it was only 2.7 million bushels – but like an addict, we just won’t stop. This of course is supportive to old crop beans and the main thing keeping a lid on the market is the fact that at the same time we are exporting beans (know & reported quantity) we are also importing beans from Brazil (unknown quantity). The battle between imports/exports, US crush margins / Chinese crush margins, and general logistics to get everything in the right place will likely rage on until the end of the summer when either a) we import enough beans and the price drops or b) the US processor closes the doors (temporarily) and the price drops. Either way, this old crop bean market will have a bumpy end to it this summer as the $3 difference in price between old crop and new crop slams together.
Export sales on corn were neutral – coming out within the range but on the top end. So not bearish, but not bullish either. Overall corn does feel a little weak lately as the weather forecasts have allowed (or are projected to) for planting to proceed well.
Opening Calls
Corn down 2 to 4 cents
Soybeans 2 to 5 cents higher
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