Good afternoon friends!
It was a green day for the 1st day of the quarter in corn, beans and cotton, while the whipping post of the commodity markets (wheat) took it on the chin again.
Corn 346’0 (+9’2) Soybeans 974’4 (+20’4)
KCW 405’6 (-9’6) CHI W 395’2 (-6’6)
Cotton 68.42 (+.34)
Corn inspections for the week, were the largest in the last 9. Soybean shipments were up 26 Mil Bu from the previous week. Combined wheat, corn and soybean exports through Sep 29 totaled 122 Mil Bu, vs. 79 Mil during the same week in 2015. To date the US corn shipments are up up 77% from last year; soybeans are up 36%; and all wheat is up 26% .
Regardless of “why” we rallied today, the short corn position will remain problematic until the grain is in hand. Driving back from Iowa City to Chicago on I-80, there was little harvest action that had occurred. I was seeing more and more fields still standing the more west I went. I consider this price action short covering, not the start of a fundamental story BUT we could easily see a push into the 360’s or even 370’s if conditions would warrant. I would be more bullish corn if wheat were coming along.
I encourage selling cotton and soybeans on significant rallies to 70.00 (Dec 17) and 9.85 (Nov 16)
Crop progress is out in a few hours, I’ll give a recap on that tomorrow AM.
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