AM Comments 10/07/15
Wednesday, October 7, 2015, 7:10 AM
Submitted by: Dustin Weiner
Corn and soybean prices are a bit firmer this morning as the market tries to get itself in line prior to the October S&D Report, due out this Friday. The trade is predicting that the overall US corn production number will be lower than what was released in the September report, due to a slight reduction in acres and yield. Opinions are mixed on soybeans as we have seen good harvest yields so far which gives the market a little concern that the USDA may come out unchanged (or maybe increase) yields.
Technically both corn and soybean futures are performing well here in October. Corn closed higher yesterday – the 4th day in a row – and after gaining 40 cents since early September, corn is now trading at the highest level since August 11th! Soybeans aren’t quite as firm, but they are trading on the top half of the recent range which is nice to see, albeit somewhat surprising given large yields and relatively poor export demand when compared to recent years. The story yesterday centered around a weaker $US, which in general drove commodity prices higher - the $US appears a touch weaker again today, we will have to wait to see if that holds. Even though we are in the middle of harvest, fundamental news seems to be lacking... It sure looks/feels like the market doesn’t want to be short ahead of Friday’s report.
Soybeans 3 to 6 cents higher
Have a great day!