AM Comments 7/22/15
Wednesday, July 22, 2015, 8:07 AM
Submitted by: Eric Kist
Markets are lower again this morning as favorable weather continues to be the main trade input. At the morning pause, corn is 6 cents lower, and beans are down 4 cents in nearby futures, and 7-8 cents lower in deferred months.
After flipping their net short positions to long positions after the June 30th Stocks/Acres report, managed money funds now appear to be taking profits as they are beginning to peel off parts of their long positions.
New crop soybean export sales have been a growing concern in the market as of late, as new crop commitments to China are only fractional compared to this same time period during recent years. As of yesterday, the U.S. has committed 89.5 million bushels of beans to China for the new marketing year, compared to 259 million bushels at this time last year, and 381 million bushels 2 years ago. Following South America’s record bean crop, cheaper supplies are being sourced from Brazil and Argentina, as the strength in the Dollar continues to place a premium on US crops.
Corn: 5 lower
Beans: 7 lower
Have a good day!