Friday, June 21, 2013

FC Morning Market Commentary for June 21, 2013

Good morning!

The markets were mostly lower last night on follow-through selling from yesterday.  The one bright spot was nearby soybeans, trading a little higher this morning as cash soybean basis remains firm, strengthening spreads.

The outside markets rebounded a bit overnight (energy, metals, equities) after an extremely rough two-day stretch.  The funds were big sellers of commodities yesterday, selling 12k contracts of corn and 7k contracts of soybeans.  If they are in with more technical selling again today – it will be hard to push these markets higher. 

I hate to say it – but with the USDA reports in sight (1 week from today) this market could begin to appear directionless as traders even up positions and attempt to manage risk.  At 11am on June 28thtwo reports will be released that could dictate price action for the balance of the summer: quarterly stocks and planted acres.

Opening Calls
Corn down 4 to 5 cents
Soybeans steady (old crop) to down 7 cents (new crop)

Have a great day!

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