AM Comments 12/2/15
Wednesday, December 2, 2015, 8:12 AM
Submitted by: Eric Kist
Markets are a touch weaker so far today after starting the week with consecutive days of steady gains. At the morning break both corn and beans are two cents lower. Funds have been buyers the past couple of days – fueling the trend higher – but still hold sizeable short positions. This past Monday’s Commitment of Traders report confirmed that funds were holding a near-record short position at the time.
Aside from managed money activity, soybeans have also found a bit of support from South American weather patterns. The major crop-producing areas of Mato Grosso and Mato Grosso Do Sul have been drier than normal thus far during the major planting season. Also acting as a steady support input for beans are soy crushers here in the US. Soy crush volumes continue to remain high, as the USDA reported that 170 million bushels of beans were crushed during October, up from 135 mil. bu. crushed during September.
Overall, it appears markets are catching their breath so far this morning, but I wouldn’t be surprised to see both corn and beans trade higher again today, continuing with the trend of the week.
Corn: 1-2 lower
Beans: 1-2 lower
Have a great day!