Daily Market Commentary
January 23, 2018
The lack of forecasted rain in Argentina has traders covering some of their shorts in the soybean market which currently sits at short 85,000 contracts. This was as high as 107,000 contracts less than two weeks ago. Corn on the other hand has added to their short position and currently sit at short 223,000 contracts.
Producers should be actively selling this short covering rally in soybeans with new crop board levels hanging around the $10 mark. This weather rally will not last and prices will retrace due to the stocks of soybeans on hand around the world.
Corn meanwhile continues its range bound trading in the $3.50 range for nearby futures. With the lack of news this market will continue to trade steady to lower going forward.
Producers should continue to put firm offers in on old and new crop corn that is not contracted. Target $3.90-4.00 on the CBOT for fall delivery and $3.75-3.85 on the CBOT for summer delivery.
Have a Safe Day!