AM Comments 04/21/16
Thursday, April 21, 2016, 1:04 PM
Submitted by: Dustin Weiner
Once again overnight, prices rallied with soybeans again making new highs for the move (by my count, soybeans have made “new highs” in 8 out of the last 9 trading days). Corn also made new highs last night (5 days in a row of new highs for corn) and is trading at the highest level since last fall. We can talk about fundamental stories if you want (SA weather, rumors that China is in the hunt for some beans) but really – money flow appears to still be sitting in the driver’s seat. The funds are buyers, plain and simple – the attitude for many commodities these last few days has been an obvious “risk-on”. Of course, these higher prices have pressured basis across all corners of the USA in both commodities as the farmer has rightfully rewarded this market but unloading a large share of his/her crops.
Overall today – things should start off firmer but it could get pretty choppy/volatile. If the funds stay in here and buy it all day, we should see similar price action to yesterday. If not – these markets are due for a breather I’d think…
Corn 1 to 2 cents higher
Soybeans 3 to 8 cents higher
Have a great day!
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