AM Comments 08/02/16
Tuesday, August 2, 2016, 1:08 PM
Submitted by: Dustin Weiner
It was a mixed trade last night, although our markets seemed to spend most of the session trading lower in what appeared to be follow through selling from yesterday. The crop conditions report yesterday afternoon once again reflected great crops with corn ratings staying unchanged at 76% good-to-excellent (expected) while soybeans actually improved 1 percentage point, up to 72% G/E which was a little surprising. Yesterday FCStone (private firm) released their U.S. crop survey results and they showed a record corn yield (175.0 bpa) and a record soybean yield (48.8 bpa). These of course are well above the USDA and this probably didn’t effect that market too much as this is just one of many private estimates that will come out in the next few weeks. The numbers that truly get traded will come from the USDA.
Overall with strong crop ratings, good looking weather and private estimates starting to roll in with big yields – it is very difficult to get anything going in regards to a futures rally in either corn or soybeans. Both commodities made new lows for the move last night and do appear to be sitting in areas of “support” on the charts (not that that makes anyone feel better). Maybe if we can find a few pieces of fresh demand news we can bounce a touch, but for the time being – any serious rallies are likely meant to be sold.
Soybeans 3 to 5 cents lower
Have a great day!
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