AM Comments 07/31/14
Thursday, July 31, 2014, 8:07 AM
Submitted by: Dustin Weiner
The weekly export sales report was out this morning and soybean sales were strong – on the upper end of the range of expectations for old crop and above the range of expectations for new crop. New crop corn sales were also strong (above guesses) but old crop corn sales were poor, falling below the range of guesses. Call this report neutral/bullish to soybeans and neutral/bearish to corn.
Overall the grains (corn and wheat) seem to still be searching for a bottom as the US corn crops keeps getting bigger and world wheat supplies grow. Soybeans on the other hand feel like they still have a bit of a weather premium built into them. Short term soybean price direction could simply come down to whether or not next week’s weather forecast lives up to the hype. If the rains don’t materialize (they’re projected for mid-late week next week) – then the weather premium was justified but if we get a nice soaker???? No one should be surprised to see prices drop.
Corn 1 to 2 cents lower
Soybeans 2 to 4 cents lower
Have a great day!
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