Grain markets were mostly weaker as corn and wheat were in negative territory while beans was making a late session move back into positive ground. In outside markets the US Dollar index pushed above 100 while crude oil and equities were posting modest gains.
Yesterday saw corn trade in a narrow range following Wednesday’s sharp move higher. The $3.70 area has proven to be a formidable match for any rallies over the past 4 months and we need a close above this to see some potential to reverse the choppy two-sided pattern.
Weather for the Southern Hemisphere continues to be good for crops as rains return to Argentina bring relief to the dry areas that need it although the previously flooded areas that have just dried down are hoping the totals are not excessive. Rains will push into the NE area of Brazil which is needed and otherwise conditions are favorable with bean harvest proceeding around regular rain events which have slowed the pace of both bean harvest and second crop corn planting. However, on the plus side Brazil farmers have been slow to sell as the Brazilian Real has rallied helping erode domestic prices.
Statscan, using a farmer survey, pegged canola stocks in commercial and on-farm storage as of Dec. 31, 2016 at 12.2 million tonnes, matching trade expectations and declining 10 percent year-over-year.
This morning’s jobs report came in better than expected as US Labor Dept pegged 227,000 new jobs in January but the unemployment rate edged higher to 4.8%.
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