AM Comments 07/13/15
Monday, July 13, 2015, 7:07 AM
Submitted by: Dustin Weiner
Good morning! Equity markets around the globe are rallying a bit the morning as Greece and the EU have come to an agreement in principal on a bailout. There are still a few hoops to jump through but most feel that this is a done deal and Greek banks may finally reopen. Our corn and soybean markets are both showing a bit of red ink this morning (thanks in large part to a stronger $US) although corn spent most of the night trading positive. Short term price direction will hinge on the weather for the next two weeks, both temperature and precipitation.
The charts still look solid for our markets but the funds have really flipped their positions around, now trading from the long side. They of course have recently cleared out of their deep short positions which had been a nice source of buying for the grains lately. Now that they are long? We are likely going to need something (further tightness of the S&D balance sheets for example) to get them to add to those longs...
This afternoon’s Crop Progress and Conditions report is expected to show both corn and soybean G/E rating drop slightly from last week’s report. The heavy rainfall across the Eastern Corn Belt last week (IL, IN, OH) is to blame.
Corn steady to 2 cents lower
Soybeans 5 to 8 cents lower
Have a great day!