Yesterday’s Close: December corn futures finished yesterday’s session up 4 cents, trading in a range of 7 cents. Funds were estimated buyers of 14,000 contracts.
Fundamentals: The grain markets continue to be encouraged by the prospects of a trade deal with China in the coming weeks. This primarily affects the soybean market, but spillover momentum surely won’t hurt the corn and wheat markets. Keep in mind that spillover works both ways, if China were to walk away again (probable) expect a retreat in prices. The relationship between U.S. and China remind me of a high school relationship, one week you’re talking the next you’re not, so expect this to keep things on edge. Export sales yesterday morning came in at 1,382,900 metric tons, this was within the range of expectations.
Yesterday’s Close: November soybean futures finished yesterday’s session up 27 ½ cents, trading in a range of 33 ½ cents. Funds were estimated buyers of 20,000 contracts.
Fundamentals: The possibility of the U.S. and China coming to an agreement before the end of the month has put a premium back into the market, pressing prices back to pre-USDA report levels. As mentioned in the corn section, you can expect these headlines to keep volatility alive, presenting opportunities for both the bulls and the bears, a revolving door of buy the rumor, sell the news for now. Export sales yesterday morning came in at 705,000 metric tons, this was within the range of expectations.
Yesterday’s Close: September wheat futures finished yesterday’s session up 9 ½ cents, trading in a range of 16 ¾ cents. Funds were estimated buyers of 4,000 contracts.
Fundamentals: Wheat futures are seeing a continuation of buying this morning off of a string of positive headlines over the last 24 hours. Positive trade talks revolving around China and NAFTA, coupled with some great export sales have put a near term floor in prices. We are skeptical of longer term fundamentals. We are more neutral than thing here. Our bias is not binary here, just because we are not all bulled up does not mean we are all bear’d up.
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