AM Comments 04/29/15
Wednesday, April 29, 2015, 8:04 AM
Submitted by: Dustin Weiner
The corn market is a bit firmer this morning as both corn and wheat appear like they are
trying to form a bottom. It has been a rough past 7 trading days for corn, since closing higher on Friday April 17th daily July corn settlements have played out like this, starting Monday April 20th: down 2c, down 4.75c, down 0.5c,
down 2.75c, down 7c, down 5c, and finally down 0.25c yesterday. That adds up to a ~22 cent slide in futures, so we may be “due” for a higher day. With a general lack of farmer selling and physical movement of grain thanks to planting season, nearby basis
did improve a few cents over that same time period, lessening the blow a touch.
Outside markets… The $US seems to have reversed its trend (now leaking lower, currently at lowest levels since mid-March) which should support commodities. In regards to big $$, the funds are short and generally speaking they appear comfortable holding onto those shorts. The small rallies we come across from time-to-time appear to be nothing more than a little profit taking. Big picture, if we keep chugging along with no weather problems it will be much easier for the funds to add to their short positions vs. lifting them which will of course weigh on prices.
Corn 2 to 3 cents higher
Have a great day!