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MARKET COMMENTARY

AM Comments 7/29/2016

Friday, July 29, 2016, 8:07 AM
Submitted by: Joel Pudenz


At last, we’ve made it to the end of July – and good riddance. Overnight trade yielded more of the same – lighter volumes and mixed/lower prices. Outside of weather & crop conditions, there is little fresh fundamental news out there. Outside markets are a mixed bag with crude oil staring at its biggest monthly loss in a year (down ~20% from highs made in June), but the dollar is trading almost a full point lower this morning. As weather stays favorable and harvest gets closer, the prospect of any significant crop issues becomes weaker and weaker.

 

The month of July wasn’t any kinder to soybeans than it was corn. On the month, we have lost about $1.80 in November futures. Currently, bulls continue pointing towards firm export demand and the net effect on current ending stocks (which has less wiggle room than some are comfortable with). They are also looking ahead to the South American crop and the idea that possibilities of La Nina (see chart below) & political unrest affecting production and export prospects. Bears focus on the favorable near term weather forecasts and the potential for a large U.S. crop. All-in-all, weather in the month of August will play a big part in how well our soybean crop finishes out.

 

Prices at the open:

Corn – steady to 1c higher

Soybeans – steady to 1c higher

 

Have a great day!

 

@LandusCoopGrain

 

Joel Pudenz
102 Lincoln St. NE Bondurant IA 50035
O: 515-967-4207 | C: 712-210-5485
Joel.Pudenz@landuscooperative.com

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