Grains Lean Lower with Corn and Wheat at or Near Lows: When Will Funds Quit Selling?

Analyst says bottom is close technically in grain markets.

Grains started mixed Wednesday with corn lower and soybeans trying to bounce after new 3 1/2 year lows scored on Tuesday.

Wheat also tried to bounce on end of month short covering and the lower dollar.

However, weakness quickly crept into the grain markets on technical selling and continued favorable weather.

December corn fell below the old low of $4.03 and made a new contract low which weighed on soybeans and wheat.

Kevin Duling, KD Investors, says the funds have been relentless sellers and continue to push grains into new lows with the idea of higher production.

However, he thinks the grain markets are close to forming lows at least technically.

He also thinks funds may reverse course if the dollar can continue to weaken with interest rates cuts starting from the Fed.

Cattle continue to chop looking for direction from this week’s cash trade and carving out a trading range.

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