AM Comments 11/24/15
Tuesday, November 24, 2015, 8:11 AM
Submitted by: Dustin Weiner
Our markets were mixed/weaker overnight, backfilling a bit after a surprisingly strong day of trade yesterday – especially in soybeans. Yesterday morning soybeans put in a new contract low before turning around and closing higher on the day. Also important to note is that soybeans closed higher than the previous day’s high in the process which is known as a key reversal. The charts in general are all starting to look a little better and the funds are noticeably short our markets (short 77k contracts of corn and short 46k contract of soybeans), which gives the bulls hope for a short-covering rally at some point. The US producer is still not a willing seller at these prices which has pushed basis levels into a historically strong level.
Outside markets… crude oil and gold are higher while equities are called lower. Tensions are building in the Middle East after a Russian fighter jet was shot down by Turkish fighters after (allegedly?) entering Turkey’s airspace. This seems to be pressuring equites a bit, but time will tell if this turns into a major conflict.
Corn 2 to 4 cents lower
Soybeans mixed to 2 cents lower
Have a great day!