Tuesday, January 5th, 2016

Tuesday, January 5th

7:45 AM

Current market: corn 3 higher, beans 5c higher

After the Chinese stock market meltdown yesterday, China has looked to state-run funds to help control the slide of their stock market through buying equities and continuing their selling ban on securities for major investors. Dow and S&P futures are currently showing a small loss as Asia had smaller losses in the overnight and Europe is looking to rebound today. US$ is up another 47 points today, and crude is up to just under $37 barrel.

Yesterday's anemic export inspections didn't give any life to the grain markets after the macro meltdown overseas. Corn inspections were 12.8 million bushels, 10 mbu below last week and now needing to average 40.5 mbu remainder of marketing year to reach USDA goal of 1.750 bbu. With first Brazilian corn crop starting harvest in next 6 weeks, exports will have another competitor to the already watered-down corn supply market.

Beans were supportive at 55.5 mbu, but the Chinese currency devaluation as well as the SAm bean crop coming along better with some recent rainfall had put too much pressure on our domestic bean prices. Of note, year-to-date inspections of 1.017 bbu are 10% lower than last year's 1.113 bbu; using last year's exports of 1.843 bbu, current projections would put US bean exports at 1.658 bbu, 56 mbu short of current USDA projections of 1.715 bbu.





Disclaimer: This commentary does not represent the views of Tremont Cooperative Grain Company, but rather one author's opinions. Data used in this commentary is taken from sources believed to be accurate, and is intended for informational purposes only and should not be solely used to conduct any type of trading strategy. For more information, please contact Tremont Cooperative Grain Company at 309-925-4981, or email info@tremont.coop.