AM Comments 11/28/16
Monday, November 28, 2016, 1:11 PM
Submitted by: Dustin Weiner
Our markets are starting off a little mixed this morning with soybeans continuing higher while corn and wheat struggle to trade steady. Soybeans are looking to build off of a strong day Friday where they put in their 6th positive day in a row! A good looking bean chart seems to be attracting technical money (the funds bought 7k contracts of beans Friday) and solid export sales reported Friday helped advance the move higher as well. Also helping the soy complex out is a continued rally in oilseed markets as Malaysian palm oil is trading at a new, 4-year high.
With the US farmer already having sold a good percentage of his soybean crop, the bears are struggling to change the narrative to the downside and we keep leaking the market higher. At some point (if it hasn’t been already) this needs to be viewed as a great opportunity for producers to manage risk to make sales of both old crop and new crop soybeans.
This afternoon we will get the CFTC’s Commitment of Traders report (delayed until today due to the holiday last week) which should confirm the large fund length in soybeans, large shorts in wheat and modest shorts in corn. Overall for today, we may end up watching money flow for direction as fundamental news is still hard to come by – at least until we get a better feel on the crops down in South America.
Corn 1 to 2c lower
Soybeans 8 to 10 cents higher
Have a great day!
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