Afternoon Comments 7/30/2013
Tuesday, July 30, 2013, 3:06 pmSubmitted by: Kyle Lehman
Markets were mixed today with corn closing higher while soybeans closed lower. December corn has closed lower 8 of the last 9 sessions (the other was unchanged) so it is no surprise to see a minor snap back in the market like we saw today. There is probably still a little weather premium built into the market as they await to see what the weekend rains will do for eastern Nebraska and Iowa. If these rains are as advertised or more the market could pitch the weather premium as most traders will assume it’s enough rain to reach harvest. Temperatures are expected to warm slightly over the weekend but not to threatening levels. Weather forecasts not only look favorable here but in much of the corn growing areas of China and Ukraine.
Soybeans traded lower on rains moving across Missouri and Illinois and the expectations of more rain for the corn belt over the weekend. Soybean development should pick back up with warmer temps in the forecast for next week. There is still a significant long position by funds on fear of an early frost prior to soybeans reaching maturity.
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