Feb 3, 2016
Grains, Beans Little Changed as Investors Weigh Slack Demand vs. Dry Argentina
Grains and soybeans are lower as investors weigh poor demand for U.S. supplies against some dry weather in Argentina.
Demand for U.S. corn, soybeans and wheat has weighed on exporters since the start of the respective crop marketing years. Competing countries have thus far been able to undercut on prices, and a strong dollar makes U.S. supplies less attractive to importers as it cuts their purchasing power.
Shipments of corn are down 23% since the start of the marketing year on Sept. 1 and soybeans exports are off by 9%, according to the Department of Agriculture. Wheat shipments since June 1 are down 14%, government data show.
Parts of Buenos Aires, Entre Rios and Santa Fe in Argentina are expected to remain dry for the next six to 10 days, as is southwestern states in the country, according to MDA Information Services.
At the open Wednesday, the March corn futures are trading 1/2 of a cent lower at $3.72. March soybean futures are 3 1/4 cents lower at $8.83. March wheat futures are trading 1/2 of a cent higher at $4.75. March soymeal futures are $1.60 per short ton lower at $273.00. March soyoil futures are trading $0.16 higher at $30.95. In the outside markets, the Brent Crude oil market is $0.85 higher per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 72 higher.
Iowans Show Support For RFS-Backers as Phones Finally Stop Ringing
The Iowa caucuses are finally over, which means one very important thing: Iowans no longer have to field dozens of automated calls each day telling them for whom to vote.
Residents of the Hawkeye State are likely – no, definitely – relieved that the calls have stopped, so much so that one quipped `I think I’ve gone deaf, I haven’t heard my phone ring for at least a half hour.’
Iowa voters made their voices heard on Monday, voting for Ted Cruz on the Republican side and, in about as close a vote as possible, Hillary Clinton on the Democratic side. Not surprisingly, however, corn farmers made their voices heard.
Some 83% of voters cast their ballots for a candidate who was pro-ethanol, according to America’s Renewable Future. Again, that’s not a shocker considering Iowa is the biggest corn-grower in the nation.
“In contrast with 2012’s caucus, a higher share of the vote went to pro-(Renewable Fuels Standard) candidates,” said Eric Branstad, state director of America’s Renewable Future.
Oddly, Cruz, who took almost 28% of Republican votes, was one of only two candidates who weren’t pro-RFS, the other being fellow Republican Rand Paul who received about 5% of the vote, the group noted.
The fight isn’t over as the general election looms large in November, and the ethanol debate, while not as pronounced this year as it has been in the past, still will be on the minds of some voters, especially those in the Corn Belt.
Discuss the outcome of the Iowa caucuses in Marketing Talk.
Blizzard Conditions Expected in Great Lakes Region Wednesday
A large storm that hammered parts of Nebraska, Iowa and Minnesota is moving east into the Great Lakes region, according to the National Weather Service.
A mix of freezing drizzle and snow will come with the storm, which could produce accumulations of up to 6 inches on Wednesday, the agency said. Light snow also will continue in some parts of central Wisconsin this afternoon.
Travel is ill-advised as roads are expected to be treacherous throughout areas affected by the storm for the past 24 hours. Parts of Interstate 80 were closed yesterday as the snow and ice moved through the Midwest.
Downpours in parts of the southeastern U.S. are causing flash flooding, the NWS said. Almost all of Alabama and Georgia are under a flash flood watch as rapidly falling rain poses a threat, according to the agency.
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