COMMENTARY 1/24/17

dry weather for Argentina, S Brazil, and Paraguay for the next 7 to 10 days.  Heat resumes in Argentina and Paraguay Fri/Sat and all areas turn cooler and wetter once we get into Feb.  N Brazil remains wet (including Goias and Mato Grosso) with exception to Bahia where drought conditions worsen.

St Louis river level STEADY ~ at 16.5′ and forecast 16.0by 1/30.  

CORN

DOWN 6

Mar fut closed weak at 363 AFTER breaking thru 370 to record high of 371. This is the highest we’ve seen since 7/18. Freight is still high from last week and movement off the farm is nill.

 Bloomberg Trader Bias:  Bullish 37% TW (17% LW),  Bearish,39% (21% LW), Neutral 44% (42% LW)

BEANS     

UNCHANGED

A 16 cent trading range today. In SA, warmer temps, less rain, followed by cooler temps and chance for showers 10 days out. Cordonnier holding steady on his last Argentina crop estimate of 51 MMT and Brazil’sl est of 103 MMT.  The USDA did announce a 145,000 MT sale, with 103,000 to unknown, and 42,000 to Mexico. Informa too released an acreage update, suggesting bean acres are going to be 88.6 million acres vs 88.8 million acres back in December. The current est is a 5.2 mill acre gain compared to last year.

Bloomberg Trader Bias:  Bullish 42% TW (0% LW), Bearish 37% (61% LW), Neutral 21% (39% LW)

WHEAT

DOWN 6

Little fundamental news and NO Fund buying like we saw yesterday.

Bloomberg Trader Bias:  Bullish 39% TW (17% LW), Bearish 33% (44% LW), Neutral 28% (39% LW)