AM Comments 09/06/13
Good morning!
Our markets are bouncing a bit this morning ahead of the heat forecasted for this weekend and into next week. Soybeans yesterday worked lower during the early part of the session, only to find renewed spec buying interest. The traders remain bullish soybeans and will look to defend that position when they can.
The fundamentals in the corn market still appear bearish (negative) thanks to strong yields, a poor chart and slow demand. The traders who are buying corn these days are probably hoping that soybeans will pull prices higher, but so far that isn’t working.
We had a jobs report out this morning that was negative – but the stock market is trading higher after its release. The thought process behind that centers around the idea that if the economy isn’t turning around, the gov’t will have to continue their stimulus plans, so… buy buy buy.
The weekly export sales report was out at 7:30am, we saw solid sales on new crop soybeans and disappointing corn sales. Informa (a well followed private company) will release their crop production estimates later today (usually late morning). The USDA of course comes out with their numbers next Thursday.
Opening Calls
Corn 1 to 3 cents higher
Soybeans 4 to 6 cents higher
Have a great day!
Dustin Weiner
@fccoopgrain
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