Mid-AM Comments 10/06/16
Thursday, October 6, 2016, 2:10 PM
Submitted by: Dustin Weiner
We are seeing mixed markets this morning as corn and soybeans started the session lower and have inched closer to unchanged while wheat is again trading firmer. The wheat market made a sharp turn higher yesterday, due to good export activity and perhaps more importantly – the funds are holding a near record short across all three wheat exchanges which gives wheat plenty of opportunity to experience short covering rallies. The funds are also short a pretty good chunk of corn futures, but it’s not ‘near-record’ like it is in wheat.
Informa released their updated production estimates yesterday and they shaved their corn yield just a touch, coming in at 174.5 bpa (it was 174.8 previously). Their bean yield estimate was bearish as they bumped it from 49.5 bpa to 51.5 bpa. Also, the weekly export sales report was out earlier this morning and sales were above estimates on both corn and soybeans which could be what helped the markets claw back closer to unchanged.
Overall for today, we look for a mixed trade to continue as the battle between strong demand and strong yield rages on. There have been a couple of friendly conversation pieces rising to the top of conversations - one involves seasonal lows being already set and the other centers around the expected interest rate hike which could allow money to flow a little easier into commodities. Both of those are pretty soft in my opinion, but both could allow our prices to drift higher on a slow news day.
Corn is steady to a penny lower
Soybeans are 1 to 2 cents lower
Have a great day!
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