Yesterday’s Close: May corn futures finished yesterday’s session down 4 ½ cents, trading in a range of 8 ½ cents.
Fundamentals: The hopium surrounding a “deal” and commitment from China renewed optimism on Sunday night’s open. We always take the overnight/early morning trade with a grain of salt because we are a firm believer that volume confirms price. When we got more participation on the floor open, it did not confirm the move higher, which led to a buyers strike. For clients looking to be buyers in the market, we have been suggesting sitting on the hands until the March futures go off the board tomorrow. Export inspections yesterday morning came in at 751,000 metric tons, below the low end of estimates.
Yesterday’s Close: May soybeans finished yesterday’s session up ¾ of a cent, trading in a range of 10 ¾ cents.
Fundamentals: We came into the early morning trade skeptical of the “good news” regarding commitments from China, suggesting that: “it looks like a commitment to continue kicking the can (real issues) down the road.”. The price action should not be all that surprising considering this has been a revolving door of, buy the rumor sell the news. Yesterday morning’s export inspections came in at 1,307,000 metric tons, above the top end of expectations.
Yesterday’s Close: May wheat futures finished yesterday’s session down 17 ½ cents, trading in a range of 22 ¾ cents.
Fundamentals: Wheat got taken to the woodshed yesterday, which wasn’t all that surprising considering the overnight price action. In yesterday’s report we said: “the inability to hold a rally on positive news in the wheat market is not a good sign”. This prompted us to turn our bias to bearish for the time being. We will likely be looking for a near term bottom when the March futures go off the board, there may be opportunity for a relief rally at that point. Export inspections yesterday morning came in at 694,000 metric tons, well above the top end of expectations and nearly double that of the previous week.
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