AM Comments 10/24/16
Monday, October 24, 2016, 12:10 PM
Submitted by: Dustin Weiner
The headlines from the night session last night were ruled by the soy complex as soy oil and soybean futures pushed higher as world supplies of veg oils continue to cause concern. Soybean oil is at new contract higher and this rally has put November soybeans at a new 2-month high but unfortunately corn and wheat have been able to ignore this (so far) with both commodities trading just below Friday’s close.
Weather… there looks to be at least another day of strong harvest progress before the rains move into the northern belt tomorrow morning. The temps look to remain above normal in the 6-10 day forecast while the northern half of the belt could be a little wet while the southern half should remain dry. In this afternoon’s harvest progress report the trade is expected corn to be 60-65% harvested and beans to be 75-80% harvested.
Overall for today - projecting price action seems like even more of a guess than normal. Soybeans successfully bounced to near-term targets last night and while we could break through those to trade even higher, we need to be careful as many bulls could easily start taking profits in here. Corn and wheat are holding on ok (only down a penny) which I suppose is a good sign, but it is a little concerning that they can so easily ignore a double digit rally in beans…
Corn is steady to 1c lower
Soybeans are 11 to 13 cents higher
Have a great day!
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