AM Comments 08/19/16
Friday, August 19, 2016, 12:08 PM
Submitted by: Dustin Weiner
As the week comes to an end our markets are lower this morning with beans feeling most of the pressure in sympathy with Asian markets that were lower overnight. Soybeans got smacked around pretty good yesterday morning also, at one point trading approx. 20c lower before battling back and closing only a shade lower at the end of the day. This morning feels somewhat similar as soybeans are again double digits lower… time will tell how the end of the day goes. Lately it does seem like when the outside markets are iffy (this morning crude is lower, dollar is stronger) the grain complex downshifts into a conservative mode. Something to watch as the day progresses.
As I mentioned yesterday, the annual Pro Farmer crop tour starts on Monday and you can expect pictures from the very first fields to be blasted on social media pretty quick. Final results will be out on Thursday. Big picture – no matter what the tour says, the trade will continue to struggle to predict how strong demand and big supplies will all shake out. In the case of corn there is probably room for error on the supply side, but that might not be the case with beans as there are reports seemingly every day about additional boats being booked out of the U.S. I suppose we need that kind of demand if we are to soak up this record crop…
Looking back on price action this week, Dec corn is currently trading approx 8c higher on the week while Nov beans - even though they are double digits lower this morning - are still nearly 20c higher on the week. If we can hold those gains into the Pro Farmer Tour kickoff on Monday, I think we’d need to chalk that up as a small victory for the bulls.
Corn 1 to 2 cents lower
Soybeans 10 to 15 cents lower
Have a great day!
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