Morning Comments March 3, 2017

Good morning and happy Friday!

It really is a happy Friday, both corn and soybeans trading higher this morning after a disappointing day yesterday.

 

Opening Calls:

Corn +1 to +2 cents

Soybeans even to +2 cents

 

Corn has held its ground pretty well this week considering the E15 story has stalled out with no new information coming to light. Most commercial elevators and end-users have rolled corn bids from March to May futures. The majority did so at a 4c to 6c roll. With the CH:CK spread floating between 6c and 7c, Interior Iowa basis has inherently firmed up a couple of cents.

 

Traders will be watching the Federal Reserve Chairwoman, Janet Yellen, closely today for more clues as to whether we could see a March interest rate hike. A rate hike according to estimates has a 90% chance of happening, with that we could see the U.S. dollar spike which generally pressures grains and the commodity sphere. Currently, the USD is lower following sharp gains over the past week.

 

Outside markets are mixed this morning with crude oil trying to gain some ground after a week of downward action. U.S. production levels continue to grow and imports remain strong. U.S. inventories of oil are near record levels.

 

Brazil’s Trade Ministry released their export report from February showed their soybean exports totaled 3.51 mmt versus a year ago at 2.04. As for corn exports, they are in line or a little less than a year ago. Excessive rainfall continues making travel difficult, particularly flow to important ports.

Today is the deadline to sign up for our “Averaging Contract”, so contact us if you want to get some bushels enrolled.

Have a great weekend.