Corn and beans: steady
Corn and beans are trading steady this morning after Friday’s fall. Soybeans fell hard with rising tensions in the Middle East after the U.S. airstrike, and corn followed beans lower. But both corn and beans are fighting a bearish story. On the corn side, the bears are arguing continued weakness in U.S. ethanol production with a reduction of 5 million gals production this week and an 8 week low of corn export sales. The bean market stumbled hard on Friday and is trading steady today with continued political turmoil in the Middle East. Weekly export soybean sales fell below trade expectations, and China continues to buy beans from South America. With the WADSE report being released this Friday at 11 AM, general expectations are to trade sideways as traders position themselves for the report.
Our general thoughts are to make some small new crop and old crop sales on corn before the report, protecting some downside risk if USDA does not reduce acres or yield like trade believes. Also, if you have not made an old crop soybean sale on the rally, it’s good to remember we have not seen these cash prices in some time. Remember, rallies are made to be sold.
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