- The week has started mixed in Chicago markets although as the day has progressed we have seen the market decline to losses across corn, wheat and soybeans. Early trade saw wheat in Chicago jump on bitter cold conditions across central US regions in trade that was described as active. Both bulls and bears could claim success today! Needed rain fell across Argentina and S Brazil over the weekend, the best amounts reaching ½- 1½ inches across Buenos Aires/La Pampa, and bear traders can claim S American yield potential remains intact. The bulls can claim Chicago have not collapsed on S American rains, and have actually traced in positive territory for much of today. Take your pick!
- One thing seems sure to us, and that is that we will gain some measure of quite how much weather premium is in soybean prices and whether or not it is a demand driven rally that we have been witnessing since late November.
- The US$ has held largely steady overnight and the Chinese Yuan is at 6.96 vs. US$. Dalian soybeans and meal futures closed mostly higher, helping early US prices. China continues to ship its existing purchases giving no concern for defaults or rollover of positions at this time.
- Jan ’17 soybeans have continued to hold $10.20 support, for how much longer? It has been tested more than once!