Fccoop

MARKET COMMENTARY

AM Comments 07/27/15

Monday, July 27, 2015, 7:07 AM
Submitted by: Dustin Weiner


The corn and soybean markets are both sharply lower to start the week as the news wire seems to be packed full of bearish inputs.  To start things off, the COT (commitment of traders) report that was out on Friday showed the funds 70k contract longer than expected in corn. This is bearish to the market with the viewpoint being ‘the longer they are, the more they have to sell’.  Secondly, the updated weather maps are showing good growing conditions from now through early August for most of the corn belt as the East continues to dry out while the West keeps plugging along with great growing weather.  Third, the outside markets are on their heels a bit with energies and equities both lower as I type this.  The big story in the financials this morning was the 8.5% drop in the Chinese stock market last night!  It will be interesting to see what US stocks do today.  Lastly… the charts look fairly disgusting which has the technical guys selling also.  After last night corn is now trading below its 100-day moving average for the first time since the late June rally. 

 

So overall… today looks to be an obvious down day and with the wide variety of bearish stories, rallies should be limited although stranger things have happened. This afternoon the USDA will release their weekly crop conditions report which will give the market something new to trade off of overnight tonight and into tomorrow.

 

Opening Calls

Corn 9 to 11 cents lower

Soybeans 10 to 12 cents lower

 

Have a great day!

 

@fccoopgrain

 

 

 

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