Good Evening 7-25-13… Markets closed lower on continued long liquidation pressure that began earlier in the week when August soybeans collapsed along with basis levels. Soybeans still have margin liquidation problems ahead but new crop corn futures looks to be about to begin a stabilization period. Nearby September still have more down until carry is built into the market. Weather forecasts remain non-threatening but many areas do need a drink of water to keep current yield prospects in place. Both the corn and soybean crop has a long ways to go before the deal is sign, sealed and delivered but this week’s cooler temps have been a blessing to the corn in pollination. Price wise, the lead soybean futures charts shows a calendar year high during the first few days of July down to a calendar year low this week engulfing the whole year’s price range in one month. New crop November soybeans slice through the previous corrective low of 12.25 sending price back to the April price levels of the 12.10 mark +/- 15 cents. I look for November soybeans to begin a stabilization period at today’s low point of 12.15. Using the midpoint of the 5.25/5.64 rally in September corn futures to swing a move off the 6.106 high, puts a downside target of 4.78 for on the dart board. This implies December futures are poised to rally as the market goes to carry. H. Dan Zwicker Dan.Zwicker@cgb
Posted on: Thu, 25 Jul 2013 21:16:15 +0000
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