AM Comments 05/29/13
Wednesday, May 29, 2013, 7:25 amSubmitted by: Dustin Weiner
Good morning!
For markets this morning you can expect to see a two-sided trade after an expectedly quiet night session last night. Price action is being driven mainly by the wet U.S. weather. In the near term this is giving the market a little strength as the last 14% of corn and 56% of soybeans try to get planted across the U.S. (yesterday afternoon’s planting progress report showed corn 86% planted and beans 44% planted).
Yesterday’s weather-fueled rally benefited greatly from the funds (buying). The bulls we will want to see them step in and buy again today if we are to keep this price trend higher. The weather forecasts are still a little friendly to prices with rains over the next three days with a break and then another chance for rains mid next week with another similar break before another chance of rain in the 11-15 day! If some of the rains in the extended forecast fizzle out – these crops will get planted (or replanted) and prices should break, if not - this recent rally will stay supported. It sounds simple, but it never ends up that way…
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