AM Comments 11/13/12
Tuesday, November 13, 2012, 8:25 amSubmitted by: Dustin Weiner
Good morning!
Both corn and soybean are modestly higher this morning – neither commodity took out yesterday’s lows last night. This could just be Turnaround Tuesday type action but if you listen closely you can almost hear the soybean traders take a deep breath after dropping $1.10/bushels since last Tuesday. That could be enough!
Partly due to the weakness in soybeans, the corn market broke out of it’s almost two-month trading range yesterday and not surprisingly we are hearing of buyers stepping into that market today. The USDA announced this morning that just shy of 160k tons of corn was sold for export to “unknown”. There are also countries in looking for wheat this morning as well. Gulf basis was also firmer yesterday, especially in soybeans.
Even though the cash market remains pretty strong for both corn and soybeans we have done severe damage to the charts – pushing soybeans into more of a bear market. The environment may be changing from “buy the dips” to “sell the rallies”. Unless the strength in the cash market truly takes over, we may need to have something change either in South American weather or in overall U.S. / world economic factors to turn the futures prices around.
Currently
Corn is 3 to 5 cents higher
Soybeans are 4 to 6 cents higher
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