AM Comments 7/2/15
Thursday, July 2, 2015, 8:07 AM
Submitted by: Eric Kist
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.
Corn: 2-3 higher
Weekend weather for the 4th of July looks to be clear and sunny – have a safe and fun holiday!