AM Comments 08/31/16
Wednesday, August 31, 2016, 12:08 PM
Submitted by: Dustin Weiner
The overnight session is indicating a weaker trade once again. It has been quite a losing streak lately, I believe yesterday was the 7th lower close in a row on corn and the lower trade yesterday was the 6th lower close in a row for soybeans. Wheat is right there also, working on 8 days in a row. That puts things in perspective with how one-sided the trade has been lately. I read this morning that this is a 7-year low in corn and a 10-year low in wheat? I haven’t looked at it close enough to prove that necessarily, but that is impressive.
As you can imagine - the funds appear to have decided to either A) build short positions or B) exit our markets altogether and this is where we sit. Fundamentally the market seems desperate for an injection of fresh news but that may not come until combines roll. Until then, we could keep drifting steady/lower searching for a bottom. Today our markets are simply struggling with a ‘record crops and record demand’ situation that is hard to pin down. Plenty of room for hiccups in the coming crop year, but we don’t know for sure yet which way they will push us…
Soybeans 5 to 7 cents lower
Have a great day!
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