Tommy Grisafi, Advance Trading, says soybeans give back some gains after a three day rally on rains that fell in the Corn Belt adding to the record yield and with some First Notice Day selling and liquidation.
“Its all of that, coming off those big Pro Farmer numbers the beans are out there. Are 52 bushels, 53, 54, 55? So, you get a rain at the end of August you’re going to see some pressure on soybeans,” he explains.
Corn tried, but could not build on Tuesday’s key reversal which Grisafi says was disappointing but the volume was also light as the market is going into a big holiday weekend.
Corn also seemed to be drug down by soybeans, lower crude oil and a higher dollar index and old crop pricing ahead of First Notice Day on Friday.
So, he isn’t sure if row crop markets have factored in the bearish news and are in the process of bottoming.
“I’m hopeful”, he says, “But the lows may not be in yet in corn and soybeans and we could see more pressure at harvest.”
Meanwhile wheat extended gains for a second day on fund short covering after key reversals scored on Tuesday.
Grisafi says U.S. wheat has also gotten too cheap. “It’s definitely affordable, the price of wheat is one sale.”
He says there are quality issues in the Hard Red Spring wheat in North Dakota that may make high protein wheat supplies tight.
