AM Comments 12/29/15
Tuesday, December 29, 2015, 8:12 AM
Submitted by: Dustin Weiner
Yesterday the soybean market was a dime lower on not much news other that some improving weather in Brazil and some Argentina producer selling. Overnight, soybeans were a dime higher at one point and from a fundamental standpoint nothing much has changed: SA weather forecast looks the same, no better, no worse. The only bullish news getting talked about is the soybean basis at the gulf which is firming thanks to high water levels on the Mississippi River system.
It could be that the main driver is (once again) – money flow. The commitment of traders report was out yesterday afternoon and showed the funds shorter than expected (actually very close to a record short position in soybeans) and today we may simply be seeing some short covering as some of those positions get bought back. This isn’t overly surprising as we are probably due for a correction (yesterday marked the 5th straight lower close in soybeans). Overall while this rally is nice to see, it is hard to trust…
Corn steady to 1c lower
Soybeans 5 to 7 cents higher
Have a great day!