Markets Today
Mike Minor says the agency reported 29 million bushels of soybean purchases Tuesday morning which brings China’s total to from 8% to 12% of the total 12 MMT commitments they’ve made.
Randy Martinson says confirmation of 29 million bushels of soybeans sold to China is already priced into the market after the big rally to 17-month highs in soybeans. So, the market is seeing a traditional “buy to rumor sell the fact” reaction.
Soybean futures closed nearly $.33 higher on the January contract. Craig Turner with StoneX said there was unconfirmed market talk of multiple cargoes of soybeans being sold to China through the Pacific Northwest.
Brad Kooima with Kooima Kooima Varilek says the fear of Brazilian beef tariffs being lowered was part of the selloff in the cattle futures last week. However, Brazil tariffs are still at 66.4% so he says it was already priced into the market.
Arlan Suderman, chief commodities economist with StoneX says USDA only lowered national corn yield .7 bushels per acre to 186 which was a disappointment for the bulls.
Scott Varilek with Kooima Kooima Varilek says the funds continue to liquidate their long positions on the fear of the Mexican border reopening but lower fed cash is also a negative.
Don Roose with U.S. Commodities says corn and soybeans saw chart breakout with fund buying heading into the USDA report on expectations of lower yield but also watching for China buys in the daily export sales.
The grain markets fought off early weakness on Wednesday to close near the highs of the day and stage a strong technical close according to Bryan Doherty, Total Farm Marketing.
DuWayne Bosse with Bolt Marketing says grains are fading the reopening of the government on positioning ahead of USDA’s reports on Friday and the lack of China soybean purchases.
Chuck Shelby with Risk Management Commodities, says grains were mixed positioning ahead of the USDA reports with corn getting some support from lower yields in the average trade estimates.