AM Comments 03/18/15
Wednesday, March 18, 2015, 7:03 AM
Submitted by: Dustin Weiner
The markets held their ground last night and are trading higher as I type this. There has been some serious technical damage done to the charts lately (as evidenced by yesterday’s sell-off into new lows for the move). So far this morning – yesterday’s lows have held, meaning that maybe we aren’t making a run to take out the fall lows (yet). Really, with the amount of weather news we will have to deal with over the next couple months – blindly saying this market needs to go down and test those harvest lows seems a bit irresponsible at this time. It is, however, something to be cautious of.
There isn’t much for fundamental news out there… although later this morning the weekly ethanol production/stocks numbers will be out and those will be watched closely for any signs of change. I suppose some of the overnight strength could be attributed to a dry US weather outlook – but it is still very early to become concerned. Plus, the drier weather should lead to less prevent-plant acres which have been a big (friendly) story the last two years.
Overall when looking at opening calls it looks like most think that prices are going to try to recover (at least for today) as the markets are starting to look a bit oversold.
Corn 1 to 3 cents higher
Soybeans 4 to 6 cents higher
Have a great day!