It was another blood bath in the grain markets Wednesday, with the exception of old crop corn.
Corn and soybeans both made new lows for the move and hit levels not seen in three years.
Tommy Grisafi, Advance Trading, says so far the funds have been relentless sellers in the grains with the lack of a weather threat fueling ideas of huge new crop inventory and markets are nervous ahead of Friday’s WASDE.
Despite a 4.85 million bushel sale of new crop soybeans to China on a flash sale Wednesday, he says demand hasn’t been strong enough in soybeans or any of the grains to move the meter.
However, he adds there is also pressure coming from farmers selling as they are pitching in the towel moving old crop inventory.
Are these three year lows in corn and soybean prices justified and what could get the funds to change trend?
Grisafi says, “The funds are short in the grains and so far they have been correct,” he says.
While there may be some short covering or a profit taking rally soon, so far there hasn’t been a real catalyst, or any weather problems to get the funds to buy.
