MarketEdge PM Comments
Aug 08, 2023
(Cody Forde)
Good afternoon,
Turn around Tuesday was a little slow until later in the session, with soybeans leading the charge higher. November soybeans last trade was 1305^2 up 3^2. December corn last trade was 499^2 up 3^4. We have the WASDE report this Friday which could add volatility to the market. Traders are looking for a decline of 2 bushel per acre on the corn side. That would put US corn yield at 175.5. which could add some fuel to these markets. We are also watching a large unknown in China with rains which have sparked flooding in corn growing regions of their country.
Soybeans are expected to have a yield decline as well on Friday. Traders look for a .7-bushel decline from the previous report, which could keep the balance sheet in tighter shape. If we have the decline, we would have ending stocks at 267 million bushels if that comes true on Friday.
Here are some of the levels I am watching into the report. I would like to see December for close over 5.01 and head towards the gap at 525^4. After that, I will look for a push into the 5.40 area if supply warrants it. Downside targets would be a revisit of 4.81 July low.
Good afternoon,
Turn around Tuesday was a little slow until later in the session, with soybeans leading the charge higher. November soybeans last trade was 1305^2 up 3^2. December corn last trade was 499^2 up 3^4. We have the WASDE report this Friday which could add volatility to the market. Traders are looking for a decline of 2 bushel per acre on the corn side. That would put US corn yield at 175.5. which could add some fuel to these markets. We are also watching a large unknown in China with rains which have sparked flooding in corn growing regions of their country.
Soybeans are expected to have a yield decline as well on Friday. Traders look for a .7-bushel decline from the previous report, which could keep the balance sheet in tighter shape. If we have the decline, we would have ending stocks at 267 million bushels if that comes true on Friday.
Here are some of the levels I am watching into the report. I would like to see December for close over 5.01 and head towards the gap at 525^4. After that, I will look for a push into the 5.40 area if supply warrants it. Downside targets would be a revisit of 4.81 July low.
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