AM Comments 11/13/14
Thursday, November 13, 2014, 7:11 AM
Submitted by: Dustin Weiner
After a big day yesterday that featured big market swings with prices rallying to new highs in both corn and soybeans followed by a weaker close in soybeans. Also of note corn futures are said to have traded a record daily volume yesterday with over 663 thousand contracts of corn trading hands yesterday! This high volume implies that there has been big speculative buying taking place.
The soy complex sell off can be attributed to rumors that multiple cargoes of South American soybean meal were booked to ship into the East Coast of the U.S. That, along with good farmer selling pressured prices.
Overnight the markets were mixed but are trading firmer this morning on good volume which again is likely due to new spec/fund buying. I’d expect another choppy day with both markets potentially trading both sides of yesterday’s close at some point through the day. However, if the funds are going to stand in here and buy – dips may be short term…
Corn 1 to 3 cents higher
Soybeans 2 to 4 cents higher
Have a great day!