AM Comments 05/13/16
Friday, May 13, 2016, 9:05 PM
Submitted by: Wayne Kinyon
Overnight our soybean futures were under pressure once again as soybeans on the Dalian Exchange (Chinese market) were sharply lower overnight. Commodities in general on the Dalian Exchange have been working lower ever since the Chinese Government came out with new restrictions trying to reduce speculation. Also as we look at different spots on the globe: in some of the least shocking news of the day, it sounds like Argentine port workers are on strike… over wages.
Looking at a chart, a lower close in soybeans today would make it 3 days in a row of lower closes after that big ‘report-day’ rally on Tuesday. A close like that may cause some to think that a short-term top could be in a beans… I can get on board with that that thought process, however - most of us have learned the hard way recently that just when you thinks beans are priced too-high, they find a way to prove you wrong.
Weather… showers and thunderstorms are rolling through to start the weekend across much of the belt with warmer temps returning mid-next week. Not much of a story here, although it is interesting that we are talking about frost chances in the far northern belt. Was really hoping not to talk about frost until well into football season…
Overall today we expect to chop around, but stay under pressure. The USDA did announce a flash soybean sale at 8am this morning, with old crop and new crop beans both being sold to “unknown” (a lot of times, unknown = China).
Corn 2 to 3 cents lower
Soybeans 5 to 10 cents lower
Have a great day!
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