AM Comments 05/02/14
Friday, May 2, 2014, 8:05 AM
Submitted by: Dustin Weiner
The markets last night were a little higher – this looks like a nice little correction after yesterday’s severe drop. If you looked at weather models this morning, even though the next 5 days look warm and dry - I suppose you could say overall the forecasts are a touch wetter than they were yesterday which would be friendly to prices. The next rain event looks to have just moved up a day or so (coming next Wednesday instead of next Thursday??). Also in supportive news, Ukraine unrest seems to be on the front page again today, causing traders to put a little risk premium back in the market. All of this together has helped the market stay positive so far today.
The soybean chart had some major damage done yesterday with the +50c drop in July futures prices. If the market can hold here at these levels, and maybe recover some of those losses - that would be a good sign. If not, there could be another leg down in this thing.
Overall for today we expect the markets to be choppy with a decent chance we close higher ahead of the weekend. A lot can change in a weather forecast over 48 hours – for better or worse – and nobody wants to have too much risk on the table. This market could get squirrelly just before the 1:15 close.
Corn steady to 2c higher
Soybeans 3 to 6 cents higher
Have a great day!