Soybeans and wheat rallied on Monday, with corn fractionally lower.
Ted Seifried with Zaner Ag Hedge says corn ended well off session lows on Monday with spillover help from higher soybeans and wheat.
The corn market is overdue for a technical bounce after making three year lows and ending lower for eight consecutive sessions.
He says most of the bearish news associated with weather and the shock of USDA’s larger than expected acreage and stocks estimates has been worked into corn prices.
Seifried is hopeful the corn market is trying to bottom and with the funds near record short for this time of year he is hoping they will take profits going into the holiday as the market have virtually no weather premium built in.
Soybean futures rallied on Monday on short covering and some end user buying.
He says the forward spreads are indicating underlying demand for soybeans and the market is trying to entice farmers to sell old crop soybeans, but so far they are holding tight.
Again, Seifried is anticipating short profit taking in soybeans heading into the holiday.
However, he advises producers to sell corn and soybeans on rallies because the USDA report shows farmers are large holders of both corn and soybeans in on-farm storage which could continue to pressure prices.
