AM Comments 04/26/16
Tuesday, April 26, 2016, 12:04 PM
Submitted by: Dustin Weiner
Our corn and soybean markets are somewhat flat this morning but are trading mostly higher to start off the day. Yesterday was another example that the way a market starts out can have little to do with how it closes. As you may recall, soybeans were lower yesterday AM, and corn was clinging onto small gains. Well… not far into the day session the market got itself a little worked up and BAM – at one point corn was up 10c and beans were up 30c before both gave up around half of their gains right on the close. The causes (excuses?) for that rally vary – some say wet U.S. weather forecasts triggered fund buying (the funds were buyers of 16k contracts of corn and 15k contracts of beans yesterday). Others say that the Chinese were heavily engaged in our markets (more so in CBOT futures speculation then cash/physical) and were in buying yesterday.
For today, fresh fundamental news is lacking. The planting progress report was out last night (maps below) and it seemed to be in line with many trade guesses. I think I read that this is the 3rd fastest start to corn planting on record (although it will be coming to a halt in many parts of the belt with rain in the forecast). The outside markets are a little friendly this morning (crude up, $US down) and there seems to be more and more people every day talking about recent weakness in the $US - seemingly due to expectations that the U.S. Federal Reserve is not going to raise interest rates any time soon.
Overall for today look for a firmer start, but with fundamental news lacking our corn and soybean prices could easily take their cues from the outside markets.
Corn 1 to 2 cents higher
Soybeans 1 to 3 cents higher
Have a great day!
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