Morning Comments August 18, 2017
Friday, August 18, 2017, 8:08 AM
Submitted by: Landus Cooperative
Beans steady to -1
Technically the corn market is quickly approaching oversold areas as it again gave up ground during yesterday’s trade to the tune of 2 cents. The weakness in the corn market is disappointing because the overall weekly export sales came in better than expected. There is still a lot of disagreement with the USDA about their yield estimate; most coming in regards to ear weight. Indicators are reaching levels that tend to turn prices higher, so we will have to see if there is some catalyst that would trigger a recovery.
Disappointing precipitation amounts in the heart of the corn belt and longer range forecasts calling for dryer conditions gave support to soybeans. Stories are starting to emerge about lack of storage space in Brazil but that doesn’t seem to matter to the South American producer as selling has been all but non-existent. The momentum indicators did turn higher yesterday for soybeans that may bring some buying interest to the market, but it seems the funds have lost interest in owning soybeans and continue to shed length which is keeping a cap on any substantial rallies.