AM Comments 08/08/13
Thursday, August 8, 2013, 8:20 amSubmitted by: Dustin Weiner
Good morning!
The corn and soybean markets pushed higher last night – somewhat led by soybeans and China. Data released shows China soybean imports for July at a record large 7.2MMT which is supportive to the soy complex.
The weekly export sales report was out at 7:30am – we had strong soybean sales (mostly new crop) and poor corn sales. The poor new crop corn sales aren’t overly surprising because at these current price levels, new crop U.S. corn is still over-priced when compared to the rest of the world. This fact alone could keep a lid on rallies in Dec corn for a while.
However when glancing at a chart, it does start to feel like corn and soybeans are trying to form some sort of a short term bottom. It will be important to some of the technical traders to see corn and beans hold these gains from last night all the way into the close today. With the USDA report coming Monday – this could easily happen as we start to see short-covering as traders even up positions.
Opening Calls
Corn 3 to 5 cents higher
Soybeans 9 to 12 cents higher
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