The corn market scored its lows early in the session and spent the rest of the day coming back. The late rally came up just short of getting corn back to steady. Corn finished lower for the 7th consecutive session (the last higher close was 2 days before the report). There was little fundamental news to impact the corn market this morning so today’s trade took direction from several other sources. The soybean market, which spent the day trading double digits weaker, was a particularly negative influence. The U.S. Dollar index was up a strong 88 points today on news that the Chinese government is scaling back their lending policies to keep inflation in check. The higher dollar index led to a $27.00 sell off for gold futures and $1.50 in crude oil. On the day commodity funds were estimated sellers of 5,000 contracts.
The soybean market opened 10-12 lower, scored their lows around mid session when they were down more than 20 cents, and then spent the rest of the day struggling to get back to where they opened. Negative developments on the export front got the session started on the wrong foot and there wasn't much recovery from there. One of the primary drivers behind the recent weakness in soybeans has been the expectation that the world will start looking to South America for their protein needs. There was an announced sale of 270,000 ton of soybean meal to Thailand from Brazil, not the US. Indonesia is also seen tendering for SA meal. The world obviously has been waiting for this type of development to pressure U.S. bean values but the delivery periods of LH February were a bit earlier than the trade was looking for. Soybeans exports out of the US have been incredibly strong year to date but this may soon be coming to an end.
Phil Farrell
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment