AM Comments 11/12/14
Wednesday, November 12, 2014, 7:11 AM
Submitted by: Dustin Weiner
We have higher markets in both corn and soybeans this morning on what appears to be follow through technical buying from yesterday as both beans and meal broke out higher on the charts. The leader (as you likely know by now) throughout most of the rallies this fall has been soybeans with many in the market having the opinion that US soybean exports may be understated, which of course would shrink the carryout next summer. One of the underlying bullish stories that will be talked about over the winter months is the delay in Brazilian soybean planting which could slow the start of the Brazilian export program this Feb/March (which should send more boats our way). Bloomberg news has an article out this morning detailing that scenario: click here.
Technicals… Corn is still within the range for the week, Dec corn made the high for the week back on Monday at 3.7875 which should be the first little spot of resistance while the October high of 3.81 may be the second spot. Dec corn is currently trading at 3.7725. As you may know, the funds are no longer short, they are net long 181,000 contracts of corn and net long 44,000 contract of soybeans so any profit taking that may happen from the managed money side of things would be negative to price action.
The outside markets are mixed at this time with Crude Oil and the stock market trading lower while the $US is also trading lower. Overall for our grains/oilseeds today, look for this strength to continue early on and don’t rule out some profit taking at some point later in the day.
Corn 2 to 4 cents higher
Soybeans 10 to 13 cents higher
Have a great day!