Just when traders were asking “How low can grains go?”, soybeans found some support today due to Argentine demand for US beans. It looks like Argentina will be buying soybeans from the US after making a deal to sell them to China! Wheat is also leading the markets higher due to analysts continuing to reduce the Australian wheat crop production.
Corn is lagging behind both soybeans and wheat. Soybeans have a demand story and wheat has a supply story, but corn has neither right now. I do think we continue to see strong demand for corn for the rest of the marketing year but the market also thinks yields are going higher in the next WASDE report.
Going forward we see grain markets range bound. Corn should trade between $3.35 and $3.65, soybeans between $7.80 and $8.70, and wheat between $4.80 and $5.50
While the podcast does not have specific actionable trading recommendations, we do publish them in Turner’s Take Market Alert for spec traders and Turner’s Take Ag Marketing for hedgers. Want to know what to look for in the commodity futures markets? Take a listen to Turner’s Take podcast!
Craig Turner – Commodity Futures Broker
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