AM Comments 07/23/15
Thursday, July 23, 2015, 8:07 AM
Submitted by: Dustin Weiner
We are seeing a small bounce in the markets this morning after the strong selling we witnessed in Chicago yesterday. Most of that selling pressure came into corn and wheat futures – and it’s probably not a coincidence that those two markets have the roughest outlooks in regards to the demand side of the story. The outside market pressure needs to be discussed also, as crude oil made new lows yesterday and it looks like crude is trading near steady so far today. The one bright spot (somewhat) has been soybeans as processors are discovering that old crop beans are hard to find which has rallied bean spreads. Also, there have a few new crop export bean sales reported and while we are still grossly below previous years’ commitments at this time – it is nice to see the US gulf become competitive with South America again, allowing a bit of business to get done.
Overall for today, expect a little bounce in prices but be careful as there isn’t much for fundamental news out there that warrants a strong push higher. Weather forecasts remain beneficial for the crops in the ground, demand is slow and the funds don’t appear like they are ready to step in and buy commodities in general today. As we get closer to August the yield estimates and talk in the trade will start to amp up in volume which should get the trade focused back on the supply side again, which may be a little friendlier to prices when compared to the sluggish demand conversations we seem to be having today.
Corn steady to 1c higher
Soybeans 1 to 2 cents higher
Have a great day!