AM Comments 03/07/16
Monday, March 7, 2016, 7:03 AM
Submitted by: Dustin Weiner
After strong finishes Friday our markets popper higher last night and stayed firm all night. The markets have been oversold for a while which makes short covering rallies like this not overly surprising. Friday afternoon the Commitment of Traders report showed the funds holding larger short positions than expected in both corn and soybeans which also helped the market start higher last night. With the USDA’s monthly S&D will be out 3/9/16 (Wednesday) at 11am, we may see a continued evening of positions ahead of it. It is worth noting however that the trade is expecting large corn, soybean and wheat carryouts in that report, which would be bearish…
One particular commodity getting some press this morning is Iron Ore (link) which is rallying after news from China showed acknowledgement of slowing growth (which is the 1st step to potentially stepping in to aid economic growth). This appears to have triggered short covering in many commodities including other metals and oil – which is likely leaking into our grains/oilseeds.
The 6-10 and 8-14 day weather maps (below) from NOAA continue to present a warming trend, so not many changes there. Overall, look for the markets to open higher at 8:30 and take cues from the outside markets. Today and tomorrow could get choppy as we approach the S&D on Wednesday.
Corn 2 to 3 cents higher
Soybeans 4 to 6 cents higher
Have a great day!