December 18, 2015
Grain Marketing Specialist
Key reversal lower in the Stock Market helping to support commodities to end the week.
Corn holding its own this morning, after reversing higher yesterday, on strength in the soybean markets. It is reported that South Korea purchased 9.1 million bushels in the overnight trade, along with a 7.7 million bushel purchase reported yesterday. Argentina’s export tax cut, and the devaluation of the Argentina’s peso will continue to grab the attention of traders as we move forward. Corn managed to find new lows yesterday before the big turnaround. We continue our sideways trend.
Soybeans: 3 higher
Yesterday morning it looked as if we might see these markets retest the lows, then BOOM the soybeans get some buying interest, and we get a key reversal higher! It was reported yesterday that China bought 15.6 million bushels of soybeans. The traders are also taking interest in the dry, warm weather in the Mato Grasso region of Brazil. Argentina's export tax cuts will continue to be a concern moving forward. Yesterday, we managed to close above the $8.74 resistance point. We now look to break through the $8.84 resistance point.
Export sales, reported yesterday, were in line with USDA projections for the year, even though total sales for the year were behind this time last year. 6 – 10 day weather forecasts show moisture coming to the Plains next week, along with above normal temps.