AM Comments 12/27/16
Tuesday, December 27, 2016, 1:12 PM
Submitted by: Dustin Weiner
Our markets are higher this morning, led by soybeans which are currently trading over a dime higher. The rally so far appears technical in nature as the corn and soybean charts had both slipped into the “oversold” territory (thanks to sharp losses last week) and seem to have found support overnight. As for weather… patches of dry weather in parts of Brazil may be helping extend this short covering rally. Northern Brazil missed the recent rains and is expected to be ‘below normal’ for precip for the next 10 days with normal temps. However, it sounds like most of Argentina got much needed rainfall this weekend over their key (dry) growing areas. While there is debate over a few areas that might have missed out – the rains that did fall were in the forecasts and it appears traders already sold this news last week.
Overall – with the volume being light due to the holiday season we should expect a choppy trade as we get closer to the New Year. Year-end position evening / fund rebalancing could also play a part in price action this week. Fundamental news will likely continue to play hard to get – at least until we get to the January 12th S&D. The outside markets are currently mixed (the $US and the financial markets are a littler firmer, and crude/gold are both higher) – these macro markets could be important to watch this week as many wonder whether the US stock market can hold onto the post-election gains.
Corn: 3 to 5 cents higher
Soybeans: 11 to 14 cents higher
Have a great day!
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