Yesterday’s Close: July corn futures finished yesterday’s session up 5 ¾ cents, trading in a range of 6 ½ cents. Funds were estimated buyers of 14,000 contracts.
Fundamentals: Yesterday’s EIA ethanol report showed production dropped 24,000 barrels per day to 1,024,000 barrels per day. Export sales this morning came in at 796,000 metric tons, within the range of expectations. Weather continues to be a hot topic as delays look to be extended due to wet forecasts throughout the Midwest. On top of planting delays, there are also logistic concerns on high rivers. If the forecasts live up to the hype, it is likely we see additional short covering from the funds.
Yesterday’s Close: July soybeans finished yesterday’s session down 2 ¾ cents, trading in a range of 13 ½ cents. Funds were estimated sellers of 7,000 contracts.
Fundamentals: Soybeans made new contract lows but managed to rebound into the afternoon session on rumors that the trade negations could come to an end by next Friday, one way or the other. Price would tell us that there isn’t much positivity in the final outcome, but that is also largely priced in. Buy the rumor, sell the news; perhaps walking away will put a near term bottom in the market. Export sales this morning came in at 336,900 metric tons, below the low end of expectations.
Yesterday’s Close: July wheat futures finished yesterday’s session up 7 ½ cents, trading in a range of 10 cents. Funds were estimated buyers of 4,500 contracts.
Fundamentals: Futures saw some relief yesterday on the back of a strong session in the corn market. There’s an old saying, “low prices cure low prices”. In yesterday’s report we said: “a lot of the bad news has been digested over the past month which leads us to believe that there may not be much juice left in this bearish grape”. With our consistent belief that the bottom is a process not a point we are far from bullish but believe there are opportunities to poke around with calculated risk. Export sales came in at 419,500 metric tons, within the range of expectations.
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