AM Comments 07/16/14
Wednesday, July 16, 2014, 8:07 AM
Submitted by: Dustin Weiner
Both the corn and soybean markets were higher overnight and are expected to continue that trend at least into ‘market open’ at 8:30. The story in soybeans centers around the rumor that China has been an aggressive buyer of new crop soybean cargoes over the last couple days. This has somewhat propped up the November futures contract. It is interesting that the ratio between November soybeans and December corn has pushed to new highs this week (meaning beans are high priced when compared to corn). Some in the trade believe that this will cause the US producer to be more willing to sell new crop soybeans (as they presumably have additional downside risk) and more apt to hold onto their new crop corn…
Overall today looks to be a nice bump higher in what appears to be a large downward trend in prices. The fund money has now flipped to the short side of the market and will likely defend that position if needed.
Corn 4 to 6 cents higher
Soybeans 7 to 10 cents higher
Have a great day!