AM Comments 08/16/16
Tuesday, August 16, 2016, 12:08 PM
Submitted by: Dustin Weiner
The corn and soybean markets overnight traded mixed but slipped higher this morning, gaining support from a sharply weaker US dollar. The $US is under pressure for a few reasons. For one, the market is becoming more comfortable with the thought that the Fed will be slow to raise interest rates. Also there is data out there showing inflation in the UK was higher than expected for July which has the pound racing higher vs the $US. Of course, a soft $US added to an improving situation with exports leads to “risk-on” in commodities. Crude oil is making a new high for the move this morning as the $US is down almost %1 and is near its two-month low.
The crop ratings were out yesterday afternoon and they remained unchanged with US corn at 74% G/E and US soybeans at 72% G/E. Nothing much to see there as the crop remains in good shape. Overall for today we will watch the outside markets and with yesterday’s strong performance we could see technical follow through to the upside. One sign of caution could be the whole “Turnaround Tuesday” phenomenon, if you believe in that sort of thing…
Corn steady to a penny higher
Soybeans 2 to 4 cents higher
Have a great day!
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