Our corn market closed limit higher yesterday (up 25c) and had a couple cents of follow-through strength on the open last night, only to see traders taking profits (read: selling) as the night wore on. The corn market has put on 80 cents (!!!) in just the past 7 trading days and soybeans have put on $1.25, so we shouldn’t be surprised to see a little profit-taking. There has been a lot of fund buying this week and it now appears that the speculative funds are at/near record long. While we see no reason for that big long to unwind today, some day when it does, it could be ugly.
Fundamentally, not much has changed, with no signs of weakened demand and plenty of weather-related questions remain on the supply side of the equation. Weather markets, of course, can be fickle and markets, in general, do not usually trade in a straight line, but the bullish fundamentals remain the story.
While every year is different and full of its own challenges, long-term success can come from the old/simple strategy of “plan your trade and trade your plan.” Let us know what we can do to help!
Corn is 5 to 7 cents lower
Soybeans are 5 to 10 cents lower