Row crops ended ended lower Tuesday with soybeans making new contract lows again.
Tomm Pfitzenmaier, Summit Commodity Brokerage, says soybeans suffered from report hangover as the market is still pricing in the 25% increase in ending stocks.
However, soybeans also saw pressure from crop ratings remaining unchanged at 68% good to excellent and nearly ideal weather.
“If you look at the weather forecast for the next week to 10 days as it’s favorable for soybeans. If you buy into the line that August weather is critical for soybean production the forecast pretty much gets you through that time period without a lot of adversity,” he says.
He adds, “That’s going to give people to wonder if that September WASDE report is going to show another increase in carryout to put us into that 600 million bushel plus for new crop soybeans,” he adds.
He says as far as where the bottom could be he is watching $9.50 on the new crop November contract as key support.
Those same factors weighed on the corn market as well and the market followed soybeans and wheat, which negated the key reversal from Monday.
He says there isn’t a lot friendly for corn as farmers tell him they could have one of the biggest crops they have ever raised.
Plus, he says farmer selling picked up in old crop corn after the higher close Monday especially with excess inventory yet to sell before harvest.
