PM Comments 06/26/15
Friday, June 26, 2015, 4:06 PM
Submitted by: Dustin Weiner
Whew. Another big day in Chicago for our grains/oilseeds. Corn finished up 8-9 cents today and for the week was up around 30c while soybeans were also higher today and for the week the November soybean contract was up over 50c! Another round of heavy buying (short-covering by the funds) was the big factor again today with the funds estimated as of midday to have bought 24,000 contracts (120 million bushels) of corn and 17,000 contracts (85 million bushels) today alone! Wet weather is still the concern/catalyst for all of this short covering as the precip forecasts for next week – while drier than recent – are still expected to bring 60% coverage to the corn belt.
When looking at the cash market… this dramatic rise in prices has been hit HARD with farmer selling across the corn belt. Corn and beans both have been getting turned into cash this week as producers have rewarded this rally with sales which has weakened old crop basis levels in all corners of the country.
For those asking how the market will open Sunday night, you may just want to talk to your meteorologist. If the forecasts remain wet (or look wetter) at 7pm on Sunday you could probably expect to find support. If the forecasted precip fizzles out… we could see a strong pullback in prices. Remember, the USDA will grace us with stocks and acreage reports on Tuesday – of course no one knows what they will say, but they will likely be a market mover one way or the other.
Thanks and have a great weekend!