Corn and soybeans see early pressure with disappointing weekly exports at only 19.7 mb old and 12.6 mb new crop on corn, while weekly soybeans exports were at 17.8 mb old and 9.7 mb on new crop.
The market has been quiet looking for news and with no real weather issues for corn and soybeans yet to push the market the funds have been content to remain heavily short.
Corn has been rangebound recently. However, Darin Newsom, Sr. Market Analyst with Barchart says he was concerned July corn took out the $4.40 support level this morning and that could open the market up to further pressure.
Wheat may be trading weather with frost concerns in the extended forecast and Newsom says that is trumping the cancellations of China wheat that resulted in a net -3.4 mb weekly export total on old crop, with 8.2 mb new.
Livestock are mixed.
Crude oil and gold had been rallying on geopolitical concerns as tensions have escalated between Iran and Israel. However, despite that yesterday crude oil took a sharp turn lower and is seeing follow through selling today.
Newsom says that is a contra seasonal move in crude oil, but other markets like heating oil/diesel fuel are seeing the same pattern which is a head scratcher for him.
Money flow in the outside and commodity sector has been interesting as of late but Newsom says traders have been targeting commodities with stronger fundamentals.
A bigger correction in the equity markets could push some of that money over into grains eventually, but so far that hasn’t happened according to Newsom.
