Good Evening 7-24-13… Continued bull spread liquidation pressures sent the front months of corn and soybean futures sharply lower. Volatile trade was the word in the expiring August futures contact as talk of South American soybeans have been diverted to the U.S. from Europe meet processor demand until new crop inventories become available. Producer corn movement over the past couple of weeks along with newly harvested southern corn to keep most processing and ethanol plants going until Midwest harvest beings. Weather maps continue to show favorable pollination weather for corn over the next couple of weeks, putting the crop in good position to at least meet but most likely exceed demand for the coming marketing year. December corn futures posted new contract lows for the decline and ripe to close out the month of July lower. Seasonally this is very common and there’s a tendency for the market to have a recovery rally prior to the August crop report. A look at the technical momentum indicators the odds favor of some kind of bounce is in order. I would guess it to start Friday which could be extended into the end to the month next Wednesday. November soybeans closed down against the 100-day moving average and buy doing so triggered a parabolic sell. One would expect a move under 12.50 would hit a round of stops that could send the market down to test the 15.25 level for support. H. Dan Zwicker Dan.Zwicker@cgb
Posted on: Wed, 24 Jul 2013 21:27:22 +0000
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