- Markets are trading lower in subdued volume as traders shun additional risk prior to the New Year break. S American weather continues to improve and US DDG’s continue to fall in price by over $20/ton following China’s rejection of material following the discovery of the non-approved GM event, MIR 162, in a number of containers. New trade to China is currently non existent and material will have to find new homes. The additional supplies will reduce US domestic demand for soybean meal and there is evidence of a weakening cash basis as a consequence.
- It is interesting to note the price of soybeans, in relation to corn, is near historic highs. Soybean growers the world over should take note, particularly as the Brazilian harvest is getting under way.
- We would anticipate further liquidation of long soybean positions in advance of the USDA’s January report as expectation of additional soybean and corn yield is a very real threat.
- We would like to thank all our subscribers for their interest and patronage during 2013 and wish one and all a safe, happy and prosperous New Year.