Good morning!
The corn and soybean markets are all lower this morning on better than expected rain over the weekend (further south than anticipated). The outside markets are also helping the market sell off – the DOW is called down over 100 pts, crude oil is lower, gold is lower and the $US is higher, all negative in regards to money flow through our commodities. Today could turn into a “risk-off” day. Overall with what is happening with the Fed and with a potential economic slowdown in China – price action could generally drift negative. If we get too down and dirty, broad spec liquidation could follow.
Weather forecasts currently look non-threatening but for maybe the first and last time in a while – changes to weather may not matter as weather could take a backseat because… The USDA reports on Friday will be the main input this week. Waiting until Friday to see those numbers could mean a choppy trade for Monday-Thursday. Friday is also the last day of the week, month, quarter and 6-month period – meaning the fund monies could go through an ‘evening up’’ process before Friday, aiding the lack of direction.
The spreads are the only thing rallying today (in this case meaning old crop isn’t down as hard as new crop). This is reflecting the tightness in the old crop supply/demand situation and a general lack of farmer selling.
Opening Calls
Corn down 11 to 13 cents
Soybeans down 10 to 14 cents
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