Good afternoon! Prices overnight were lower courtesy of a strong US dollar. All commodities succumbed to overnight pressure and throughout the day trade.
Corn finished up 2 cents at $3.65. Beans finished down 8 cents at $9.60 after yesterdays gains.
The US dollar is strengthening. This has caused for some eroding corn, soybean, and wheat prices. The Euro also has weakened to a 10-month low against the US dollar. It's speculated this is partly due to the European Union talking about bailing out Greece's financial problems. Also, the market has been interested in what the Euro vs. US dollar does. Now eyes seem to be focused on the Chinese yen vs. US dollar.
Southern Chinese Providences are suffering from one of the worst droughts in decades. We've been hearing through the grapevine that Argentina's port strikes have been resolved. It's also speculated that China's demand for soybeans may climb to record highs this year. This is because of increased livestock feed and crush capacity. Our hopes is that this will help absorb the surging global supply of beans. 45mmt of soybeans will be shipped to China in the year ending Sept. 30, 2010. That's 5.9% more than last year. Interestingly, China's domestic soybeans have become large supplies for human consumption. Roughly 10 million tons of soybeans are used for foods such as tofu and soya sauce. One company in China will be capable of crushing 22,000 tons of soybeans per day once their new Rizhao City plant opens.
Best wishes,
Nathaniel Dubravec
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