AM Comments 10/27/15
Tuesday, October 27, 2015, 7:10 AM
Submitted by: Dustin Weiner
After yesterday’s nice pop in corn prices (thanks in large part to strength in the wheat market) the overnight corn trade settled down a bit and traded in a narrow range, mostly lower but technically on both sides of yesterday’s close. It appeared there were many traders buying corn and selling beans yesterday, funds included (the funds bought 6k contracts of corn and sold 10k contracts of soybeans). Soybeans broke through key support yesterday (thanks in part to rains in the forecast for Brazil) which likely triggered some of the fund selling.
Now… overnight the bean market showed signs of life (up a nickel or so) as there were reports/rumors out there that even after we saw the announcement of a few U.S. beans sold yesterday, China is still in the market looking for more. With harvest pretty much complete and farmer selling (lately) being below average, additional export sales could provide enough of a spark to the cash market to keep futures in check. The bearish potential for beans is still out there though and deserves mentioning, as this forecasted rain for Brazil could/should come to fruition this week which should give the market some pressure to the downside.
Soybeans 3 to 6 cents higher
Have a great day!