The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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The markets will await tomorrows usda report. In my humble opinion this report will be significant to the macro outlook of the marketplace. The soybeans remained under pressure today while oilshare gained back a bit. Tomorrow should confirm the ample supply of both old crop and new crop bean supplies. the market will start to focus on a couple things going forward. 1) the currency valuations in south america. They are now putting the south american farmer in a very profitable situation. The dollar has rallied while they have declined. This keeps product flowing. But, also insures more soy acres next season. 2) The Chinese appear to be slowing and retreating for US imports. This trend may not change for some time. Demand lost is gone. It goes to the bottom line carry over. All of this and more will prove heavy to the soy complex without a major weather problem.
The Corn was quiet. The report tomorrow will be important and drive price. As said for some time the new crop production becomes important. The acreage decline has put us in a situation where the carry could become tight. The new crop carry at 1.5 ish will keep a bid under prices. Any weather concerns will send us to hedge worthy levels. Lets see what the report says
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