February 16, 2016

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 362’6 +4’0 Feb ‘16 336’0 +5’0
May ‘16 367’0 +3’4 Mar ‘16 337’0 +4’0
Jul ‘16 372’0 +3’4 Apr ‘16 340’0 +4’0
Dec ‘16 377’2 +3’6 NC ‘16 345’0 +4’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Mar ‘16 879’0 +6’2 Feb ‘16 825’0 +8’0
May ‘16 881’4 +5’0 Mar ‘16 824’0 +7’0
Jul ‘16 886’2 +4’4      
Nov ‘16 888’6 +5’2 NC ‘16 816’0 +5’0

 

Outside market rally faded as crude oil turned negative

Crude oil falls from nearly $2/barrel higher, closed down 32 cents for the day.

Oil was higher following news of an OPEC/Russia agreement to cut production levels.

This is the first OPEC/non-OPEC agreement in 15 years; compliance issues remain a market negative.

If Iraq and Iran don’t agree to cut production the deal is not set in stone yet

Goldman now sees a trendless oil market, chopping between $20 & $40/barrel.

Equities higher following Japanese stocks; also, comments from Draghi suggest more ECB stimulus.

Big weekly bean inspections of 64.7 mb (66% destined China); corn @ 27.2 mb and wheat 14.1 mb.

Monthly NOPA crush was at 150.453 million bushels vs. 155.2 million expected

Initial reactions were for a sharp selloff but beans rebounded quickly

Hormel Foods announces their turkey farms to be back to normal production by April following bird flu.

 

February 16, 2016