Yesterday’s Close: March corn futures finished yesterday’s session up 6 ½ cents, trading in a range of 7 ¾ cents. Funds were estimated buyers of 23,000 contracts on the day.
Fundamentals: Corn futures worked higher on continued dry conditions in Brazil, raising concerns regarding potential production. Rumors that US and China were taking steps in the right direction also surfaced, something we have been writing about anticipating in the soybean section all week. We are still awaiting substance but expect to see additional positive news in the near future.
Yesterday’s Close: March soybean futures finished yesterday’s session up 12 ¼ cents, trading in a range of 17 ¾ cents. Funds were estimated buyers of 10,000 contracts on the day.
Fundamentals: Soybeans caught a big bid yesterday afternoon for “no apparent reason”, which was assumed to be rumors regarding trade with China, confirmed by news outlets a few hours after. We have been writing about the anticipation of headlines all week, they came sooner than we would have expected but it doesn’t change the mindset when it comes to trading. We knew there was a meeting scheduled, you need to anticipate headlines. With this administration, there is an emphasis on positive headlines regarding trade.
Yesterday’s Close: March wheat futures finished yesterday’s session up 6 cents, trading in a range of 13 ½ cents. Funds were estimated buyers of 6,000 contracts on the day.
Fundamentals: Wheat managed to rebound with some conviction yesterday, on the back of positive momentum in the corn and bean pits. Wheat trades best when it is in tandem with corn and beans, if we can see follow through in today’s session, we may have a technical breakout looming (see technicals below).
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