Yesterday’s Close: December corn futures finished yesterday’s session down ¾ of a cent, trading in a range of 3 ½ cents.
Fundamentals: Corn continued to trade within the range of the last week as market participants await this mornings USDA report, that will be released at 11 am cst. Estimates are for U.S. yields to come in at 177.8, slightly below last month’s 178.4. U.S. production estimates are coming in near 14.53 billion bushels, just below last month’s 14.586. U.S. carryout is expected to come in near 1.64 billion bushels, slightly lower than last month’s 1.684. These estimates are friendly but have likely been priced in over the last two weeks. We believe corn has a better fundamental landscape, but a bearish tone in soybeans and wheat could be a headwind for prices.
Yesterday’s Close: November soybeans finished yesterday’s session down 15 ¼ cents, trading in a range of 18 ¾ cents.
Fundamentals: Market participants seem to be bracing themselves for what they expect to be a bearish USDA report, released at 11 am cst. Expectations are bearish, so in line or better than expected data would likely provide support to the market. We have been very outspoken about our bearish bias over the last month but are trimming things back into a coin flip. Estimates for U.S. soybean yields are 52.2, up from last month’s 51.6. Production is also estimated to be higher with estimates coming in near 4.65 billion bushels, up from last month’s 4.586. U.S. carryout estimates are coming in near .830 billion bushels, up from last month’s .785.
Yesterday’s Close: December wheat futures finished yesterday’s session down 10 ¾ cents, trading in a range of 15 ½ cents.
Fundamentals: Yesterday morning we joked about analysts suggesting concerns over tightening supplies being the catalyst for the rip higher on Monday, that proved to be a lazy scoop on their part in yesterday’s session. If you’re new to these markets the one thing that you should know is that global supply and demand fundamentals don’t change hourly. We also watch for trends in data and don’t put significant weight in any given number. We continue to be bearish this market but have buttoned things up and would welcome a rally to sell again at higher prices (see technicals below).
-Work with our team as little or as much as you need
-Receive our daily commodity reports for FREE
-Trade with ease from our desktop/mobile platform or call the 24hr trade desk
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.