Markets were mixed Monday, with January soybeans sliding 6 2/5/ cents to $10.31, while December corn rose 2 cents to $3.54 2/5. December wheat edged up 1 cent to $4.01 1/5.
“Corn was able to maintain its chart position today, finishing slightly positive,” observed Water Street Solutions, of Minneapolis, Minn., despite a slight decrease corn export inspections from 1.15 MMT to 860.927 MT.
The rise in the price of oil after OPEC’s agreement should have a positive impact on all commodities, including ag commodities, says Joe Vaclavik, founder and president of Standard Grain in Chicago. However, even with plenty of good news, soybeans turned bearish. Monday Traders brushed aside greater soybean export inspections of 1.837 MMT than the trade expected (1.45 MMT).
“The soybean bulls need a daily diet of bullish news in order to maintain positive momentum. Today, their appetites were not satisfied,” Water Street Solutions noted in closing comments.
Markets will keep their focus on South America , where USDA projects an increase in i corn and soybean production, according to analysts.
“I would argue that the bean market is holding quite a bit of weather premium for South America, and I think we’re vulnerable to sharply lower prices if the South America production numbers turn out as projected,” cautions Vaclavik.
However, with the end of the year coming soon, there will be a lot of money flowing in and out of markets, he says.
“I think farmers selling will continue to cap rallies in this market, and user buying and fund short covering may support the market on breaks,” Vaclavik says.