AFB Grain-Soybean Close: Markets Retreat from Yesterday’s Gains
November soybeans gave back part of yesterday’s gains and closed below the key $13 mark. Slight crop deterioration was confirmed by USDA yesterday, with the percentage of the crop in good to excellent slipping to 64%. Hot, dry forecasts have traders expecting more significant damage to yield potential to occur this week. Additional resistance between about $13.20 and $13.35 will be a tough challenge as we move closer to harvest. Increased acreage in South America could also limit the upside potential.
Wheat prices moved lower again today. With the outlook for soybeans and corn to be lower in the near term, expect September wheat to test lows put in last week around $6.25. Fundamentals for this crop remain weak, with prices forecast to follow corn and soybeans for the time being.
Corn prices fell off of yesterday’s 4-week high. News from the ProFarmer crop tour of the potential for a large crop continues to weigh on the market; however, weather forecast over the next weeks remains bullish for prices limiting losses. Prices will need weather to remain dry to dampen the reports coming in from the ProFarmer tour. Corn prices bumped trend line resistance yesterday and failed to follow through with gains today. Price have weak support in the $4.75 range, expect prices to continue their fall if the crop tour continues to report the yields they are seeing now.
|Cash Bids||Stuttgart: 1299||Pendleton: 1321|
|New Crop||Stuttgart: 1133||Pendleton: 1138|
By Emily Unglesbee DTN Staff Reporter USDA boosted corn acres above pre-report expectations to 94.15 million acres, up 7% from last year. Soybean acres also rose to 83.69 million acres,