- US export data has been released as follows:
- Today’s price action in Chicago has been described as “down and dirty” with futures contracts in corn, soybeans and wheat all sharply lower today. The recent rally has inspired a “shoot now, ask later” type of mentality, which we are witnessing right now. There is a bearish overtone from the USDA’s July crop report and there have been some “tweaks” to weather models that are showing cooler and wetter conditions across the eastern Midwest in the next ten days.
- China appears to have returned to the market as a buyer, having been absent in the recent rally, and this is an important factor because any sizeable price decline will doubtless prompt further buying, and in turn price support.
- Weather markets are roller coasters, with scary turns and sharp price direction changes, 2017 is proving no exception and is not disappointing.
- Today’s spec selling after a 10-12 day rally, is clearly warranted from a corrective perspective. Central US weather has turned somewhat less price supportive although the lack of rain through the Plains remains worrisome. We caution against a bearish stance, certainly until we are more certain of weather prospects going into the key second half of July and August.