Fccoop

MARKET COMMENTARY

AM Comments 7/2/15

Thursday, July 2, 2015, 8:07 AM
Submitted by: Eric Kist


Good morning!

 

Grains traded mostly mixed/higher during the overnights, but as we enter the office this morning corn futures are down 2 cents, and soybeans are 7 ½ lower.  Fund trading has dominated the price action of the markets this week, and the general feeling in the trade is that both corn and beans are now slightly over-bought after drastic moves upward earlier in the week. 

 

Export sales numbers released this morning were neutral for corn, and bearish for soybeans.  Old crop beans actually posted a negative sales number for the week, implying net cancellations of sales, as South American-origin beans are currently trading at an $8-$25 discount to U.S. beans.

 

Locally we are seeing basis soften drastically, as the strong price action in the markets has activated a wave producer selling, allowing end users to gain coverage for their short-term needs.

 

Look for the trade to chop around today on lower volume.  As a reminder, the CBOT will close at Noon today, and will be closed all day tomorrow ahead of Independence Day. 

 

Opening calls:

Corn: 2-3 higher

Beans: Mixed

 

 

Weekend weather for the 4th of July looks to be clear and sunny – have a safe and fun holiday!

 

@fccoopgrain

 

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