AM Comments 07/06/16
Wednesday, July 6, 2016, 1:07 PM
Submitted by: Dustin Weiner
It’s all about the radar screen this morning as rains were heavier than expected especially across the northern half of Illinois (oh no, it’s raining in Chicago, sell! sell! sell!). Also parts of the drier areas of Iowa did get some precip with more chances coming here in the next 48 hours which is great for the crops, not so great for price.
Yesterday afternoon’s crop conditions report left the good-to-excellent ratings in corn unchanged for the U.S., still 75% G/E, above both last year (68%) and the five year average (65%) for this week. U.S. soybean ratings fell 2%, down to 70% G/E but are still above last year (63%) and the five year average (63%). Not much to see here, the corn number was bearish while the bean number was more neutral/friendly although the market quickly ignored the bean number with the weather acting the way it is.
Overall the technicians hope that corn and soybeans both find support at these levels (Dec corn around 3.50 and Nov beans around 10.50) but our markets lately have been known to take things to the extreme, either too high or too low. From a demand perspective, it is interesting to note that open interest in corn was only slightly lower after yesterday’s sell off which indicates that the fund selling was likely being offset by end user buying.
Corn down 5 to 7 cents
Soybeans down 20 to 25 cents
Have a great day!
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