Thin trade overnight and holding narrow high to low ranges. At 0600 CH19 up ¾ of a cent at $3.80 ½ and SH19 giving up $0.01 ¾ at $9.21 ½.
Dow futures up 21 pts at 24,494. Crude up .41 at $52.39. US $ Index a scratch firmer against world currencies.
Trade continues to monitor weather in Brazil soybean regions. Recent rains in north central regions (Mato Grosso) favoring late crop development. Limited rains in central and northeastern areas allowing dryness and crop stress to continue. Showers expected to return to central and northeastern areas next week, although amounts will likely remain too light to ease dryness concerns.
USDA will release delayed crop data (production / qtrly stocks) February 8th as well as regularly scheduled monthly WASDE Supply / Demand data. Interesting to see how USDA handles Brazil soybean production. In December USDA had
Brazil at 122 mmt. Also had world soybean ending stocks at a record 115.33 mmt.
Soy/corn ratio stands at 2.4 this morning and far from levels that would suggest a significant acreage switch out of beans to corn.
European Commission has announced that U.S. soybeans can be used in biofuels in the European Union. This in part their push to improve strained trade relations with the US?
Chinese top economic aid Vice Premier Liu will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Wednesday and Thursday this week.
Select soybean basis plants pushing bids this week to secure inventory in the face of brutally cold weather.
Market searching for a driving story this morning…
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