Morning Comments 7/10/2013
Wednesday, July 10, 2013, 8:24 amSubmitted by: Kyle Lehman
The market has been relatively quiet overnight and most likely will chop around until the USDA supply/demand report released tomorrow at 11 am. The rally over the past couple of days can be attributed to funds covering shorts as weather models suggest a high pressure ridge the last part of July and into early August will hold off rains around the assumed pollination time. The good news; temperatures for that same time frame are expected to be normal to slightly below with highs ranging in the mid 80’s to lower 90’s for most of the corn belt. Trade will really start to focus on the 11-15 day forecast which is currently calling for rains over the Midwest and western plains, if this rain fails to develop and the pressure ridge does form we could see some corn pollinating in some rough conditions.
Outside markets are supportive with the dollar trading lower while crude oil continues to make new contract highs. Unrest in the middle east has provided an $11 rally in crude over the past 11 trading days.
Corn and beans should open with a firmer tone after the USDA announced 120k MT of corn sold to China for new crop.
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