|
Happy Friday!! Since last Friday, corn is down 3 cents, soybeans are down 21 cents and wheat is up 4 1/2 cents.
Soybeans are giving us whiplash this week posting double-digit moves every day (some up, some down). Soybeans fell below the $12 mark today, with the next level of support at $11.75. We are in a clear downward trend, but if we could take out $12.48 and our highs from a week ago, it would look like pretty good confirmation of breaking the down trend. We still have a gap waiting to be filled from new years as well at $12.98.
The jobs report was really the only news we saw today, which impacted grain prices. This indirect factor increased the USD$, which by extension, made U.S. commodities more expensive on the global market (potentially negative for export sales). Key takeaways from the January jobs report includes that 353,000 jobs were added in January showing a strong economy, as well as hot wage growth of 4.5% (v. 3.4% inflation).
Argentina's crop gains vs. Brazil's crop losses continue to be hotly contested with forecasts showing wetter conditions for Argentina going into the weekend after a period of hot weather on their bumper crop.
The U.S. ag attaché in Argentina forecasts the Argentine wheat crop at 15.4 MMT, 400,000 MT higher than USDA, as yields were stronger than expected.
Funds were thought to have been all sellers today. On Tuesday, funds were nearly bang on with expectations with corn only 3,000 contracts shorter at -279.458, soybeans 3,000 contracts shorter at -101,598, and wheat less than 400 contracts shorter at -67,689.
| 
