Bryan Doherty, Total Farm Marketing, says corn and soybeans try to bounce as they are technically oversold and with lower crop ratings.
USDA reported corn conditions at 72% good to excellent a drop of 2% and soybean ratings also fell 2% to 70%. Those were below expectations and helped pop the grain market early in the session.
Doherty says corn and soybean prices have also fallen below many of the major moving averages on the charts and so funds have been selling and once again pushing the short side of the market as they perceive the crops getting off to a good start. However, the break may have been overdone for now.
He advises end users to be locking in some prices at these levels because it’s the time of year when weather can quickly turn and cause a rally.
Wheat tried to follow row crops early but continues to see fund selling and liquidation on any strength. The market has collapsed over the last couple of weeks and is struggling again today on better Hard Red Winter wheat yields as the harvest moves north. Plus, the U.S. market has been following a lower EU wheat market.
Cattle open higher then sell off despite their discount to the record cash from last week. Doherty says the market continues to take pauses trying to determine if consumer demand will keep up at the higher prices.
