Soybeans continue to grind higher on Monday after an ugly technical reversal on Friday pulling corn along for the ride.
Arlan Suderman, Chief Commodities Economist for StoneX, says the rally off of the lows in the grains has been primarily fund short covering.
So, to say the lows are in may be difficult without some confirmation in the WASDE at least the top end yield has been trimmed on corn and soybeans.
He says the big key will be seed size on the soybeans and it’s difficult to say what USDA will find in the field as a cool August usually increases seed size, while a dry August generally decreases seed size.
While Suderman isn’t expecting big changes in the September report he says with the uncertainty about how weather impacted how the crop finished there could be some surprises.
