Vince Boddicker Explains Why the Corn and Soybean Rally Ran Out of Steam Tuesday

Row Crops Consolidate for Fundamental and Technical Reasons

Corn and soybeans end lower on Tuesday failing to extend gains for a third session.

Vince Boddicker, Farmers Trading Company, says after a couple of days of short covering in both markets traders took a break.

Nationally crop ratings are high for this time of year for both corn and soybeans and combined with favorable August weather that pressured futures.

Soybeans also set back on disappointment about the lack of China business as rumors circulated last week and again on Monday about new crop export purchases from the U.S.

Boddicker says the weakness in soybean meal weighed on soybeans and in turn the corn market.

Both new crop corn and soybeans also ran into chart resistance with December corn getting as high as $4.09 which intersects withe the 20 day moving average.

November soybeans also hit chart resistance around last week’s highs and consolidated.

Wheat futures managed to close higher on the day on short covering and seeing spillover from higher Russian and Matif wheat.

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