Good morning friends
Corn (H17) 362’0 +3’4
Soybeans (H17) 1061’2 +15’0
Chi Wheat (H17) 430’0 +4’0
KC Wheat (H17) 451’2 +2’2
Cotton (H17) 72.54 +.27
Anytime I leave for a vacation, I always expect chaos in the markets. While “chaos” may be a little heavy of a term for the recent price action, the up move in soybeans certainly has my attention. The long weekend saw rains in Argentina turn into more flooding, which has caused private analysts to start to write down yields below where the USDA has Arg production near 57 MMT. I am hearing some folks say with the expected acreage loss, we could see 48 MMT. A 20% loss in Arg yields should keep beans on bid for a good while. Sunday night price action has the shorts running for the hills as old crop ramps over new crop and 17/18 Nov bean spreads pop back up to recent highs. Watch Nov 17-18 bean spreads, if they would take out the double top here, we could easily see front month beans take a run at 11.00.
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