February 17, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 367’2 +4’2 Feb ‘16 341’0 +4’0
May ‘16 371’4 +3’6 Mar ‘16 343’0 +4’0
Jul ‘16 376’0 +3’4 Apr ‘16 345’0 +4’0
Dec ‘16 389’0 +3’2 NC ‘16 340’0 +3’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 882’4 +2’6 Feb ‘16 829’0 +3’0
May ‘16 885’2 +2’6 Mar ‘16 827’0 +3’0
Jul ‘16 889’4 +2’2      
Nov ‘16 892’6 +1’6 NC ‘16 818’0 +2’0

 

Corn, bean and wheat futures were higher for the 2nd consecutive day on outside support.

March corn broke through the 50 day @ 365.75; Mar beans closed above 100 day just the 2nd time in Feb.

The cash market starting firming in the Western Corn Belt on Tuesday

Fresh fundamental news remains scarce; S American weather remains mostly favorable.

China is rumored to be selling 10 mmt of 3-year old corn that may be unsuitable for feed usage.

Demand news remains negative; yesterday’s NOPA crush of 150.5 million bushels, 5 million bushels below est.

The outside markets are supportive with the Dow up 257 pts; crude up $2.39.

Iran supports the decision by OPEC and non-OPEC to keep a ceiling on production.

It remains unclear if Iran limits production knowing their plan was to resume pre-sanction levels.

The Federal Reserve meeting meetings released showed more dovish comments from prior language

They realize achieving the 2% targeted inflation isn’t going to be as easy as hoped

It means their targets of aggressively raising interest rates won’t come as quickly as they’d like

This is bearish to the dollar and supportive for commodities if it comes to fruition

 

February 17, 2016