January 6, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 353’2 +0’2 Jan ‘16 324’0 Unch.
May ‘16 358’4 Unch. Feb ‘16 326’0 Unch.
Jul ‘16 364’4 -0’2 Mar ‘16 326’0 Unch.
Sep ‘16 370’2 +0’2 Apr ‘16 331’0 Unch.

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jan ‘16 875’6 +8’0 Jan ‘16 815’0 +7’0
Mar ‘16 864’6 +7’4 Feb ‘16 810’0 +7’0
May ‘16 867’4 +5’6 Mar ‘16 811’0 +8’0
Jul ‘16 874’4 +5’2      

 

Crude falls to an 11 year low, corn makes new contract lows & beans fall to a 6-week low.

Bearishness attributed to North Korea’s claim of successfully testing a Hydrogen bomb.

Scientists recognize seismic activity in the region but feel the event was too small to be successful.

Weekly EIA: gasoline build of 10.6 mb versus poll of 2.3 mb, the largest surge seen since 1993.

Oil stocks had a larger draw than expected @ 5.1 mb versus expectations of a 439,000 build.

China equites found support as the government extended the ban on share sales by large investors.

Weather in South America remains similar to previous outlooks; mostly favorable but drier in NE Brazil.

Finally some bullish news: S Africa says drought damage is a disaster, will need to import 5 mmt of corn.

USDA currently pegs S Africa to import just .2 mmt, lowering production slightly from 12.5 to 12 mmt.

Greenpeace claims farmers in NE China illegally plant GM corn; 93% of samples in Liaoning tested positive.

 

January 6, 2016