AM Comments 06/17/14
Tuesday, June 17, 2014, 8:06 AM
Submitted by: Dustin Weiner
The corn and soybeans markets were mostly weaker last night, with the soybean complex leading the charge lower thanks to crop conditions that look like the best in almost 30-years. The bearishness feels opposite to the old crop bean situation, where an already tight carryout seems to feel tighter by the week. Corn conditions are also looking great and Dec corn looks poised to test its contract lows.
The big fund $$ had been a friend to our markets this year, driving Dec corn futures over $5 back in March/April. Now? Well… those warm and fuzzy feelings are starting to subside as they start slowly selling out of their huge long positions. They have a long ways to go, and outside of crude oil and meat – they are losing reasons to hang on to those positions… Meaning this sideways/lower trend could continue until the bulls find a real story to chew on ( a major shift in projected 2014 production for example).
Corn down 1 to 2 cents
Soybeans down 5 to 10 cents
Have a great day!