Headlines:
- In ‘Brexit’ Speech, Theresa May Outlines a Clean Break for U.K.
- Former USDA Secretary Vilsack to Serve as President, CEO of U.S. Dairy Export Council…
- Obama to Free Manning, Jailed for a Vast Leak of U.S. Secrets…
President Barack Obama has commuted Chelsea Manning’s sentence for leaking documents to Wikileaks in 2010. The 29-year-old transgender US Army private, born Bradley Manning, will be freed on 17 May instead of her scheduled 2045 release. She was sentenced to 35 years in 2013 for her role in leaking diplomatic cables to the anti-secrecy group. The leak was one of the largest breaches of classified material in US history.
- Soymeal futures surge over 5% after Argentine weekend washout
Soymeal futures surged over 5%, to a six-month high, on fears that the Argentine soybean crop has been hit by flooding, too late for replanting, with soybean prices up sharply as well. As Chicago markets started up after the long holiday weekend, traders got to grips with heavy rains which hit key argentine growing regions. “Moderate to heavy rainfall favored northern and central Argentina over the holiday weekend, with eastern Cordoba, Santa Fe, western Entre Rios, and far northwestern Santa Fe receiving the heaviest amounts,” said Kyle Tapley, at MDA Weather Services. “The rainfall was heavier than expected across central Argentina and once again increased wetness concerns and stalled any fieldwork,” Mr Tapley said.
Summary:
A weaker US Dollar and strong Soybean complex led the way today for the grain markets. The media is crediting President-Elect Trump’s comments about the US Dollar was too strong and that the strong greenback was hurting American companies as the cause for the Dollar’s decline today. The reality is that the Dollar has been at resistance for some time now and it was due for a correction. If you were go back through our newsletters you will find that we had long documented key resistance in advance.
Today the markets continue to use the USDA WASDE Report from last week as the rationale behind the new-found strength. Corn was up 6.75, Beans was up 21.25 and Wheat was up 7.75.
All three markets are hitting key market time factors that suggested that grains could very well move higher. Over the past two years the Midwest have been the recipient of near perfect growing conditions while at the same time California has suffered drought conditions. Recently it was reported that over 40 percent of California is now drought-free, thanks to recent rain and snow across the state and especially in Northern California. If the end of the California drought is at hand that could be a signal that near perfect Midwest growing weather may be coming to an end. We suggest keeping a careful watch of the mid to early Spring weather forecasts to foreshadow the possibility of bullish action for the grain markets in early summer.
