AM Comments 09/20/13
Friday, September 20, 2013, 8:14 amSubmitted by: Dustin Weiner
Good morning!
The markets were on the defensive last night as traders continue to take profits in their bean/corn positions by selling beans and buying grains. If you look at soybeans on a chart, they appear to be in a well-defined downward trend or channel. Nov beans broke through major support last night and the next level of support could come from the psychological number of $13.00 on the Nov contract (which is 25-30 cents lower than we are now).
The weather forecasts are showing us a quiet weekend after this current front moves through. Next week’s weather also looks to be a non-event and with no cold air threats out there – the threat of an early frost continues to slip away.
Traders are also watching South American planting weather as their soybean crop is going to be very important over the next 6 months. Argentina’s outlook looks benign for the next 10 days or so. Brazil looks to get rains this weekend before turning dry next week. Parts of Brazil have been especially dry so these rains should be viewed as beneficial.
Opening Calls
Corn down 1 to 3 cents
Soybeans down 10 to 15 cents
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