AFB Grain-Soybean Close: Prices Continue Rally
Soybean prices saw strong gains today, as the market received additional support from storms forecast across large parts of the growing region. November soybeans saw strong gains today, which helped propel prices further away from support at $12. This market will remain volatile ahead of the acreage report later this month as traders work to position themselves ahead of the report. Just as a reminder the midpoint of the USDA price forecast for 2014/15 is $10.75.
Wheat prices saw additional follow through from yesterday’s gains. While gains this week have put some 18-cents on the wheat price, this market remains oversold and needs additional gains. While weather issues continue to provide support for wheat, large supplies and weak demand will likely cap gains near support at $6.
Corn prices continued their technical rally today despite a disappointing export sales report. Corn prices have bounced off of new lows and closed some 8-cents higher in the last week. In addition to technical strength, recent storms across parts of the Midwest are worrying traders about the potential damage to the crops caused by flooding, hail, and high winds. While these factors are supporting the market longer term this market will turn back to the yield potential, and unless these storms devastate large areas the outlook for these crops will remain for record yields which could push prices back towards $4 once again.
|Cash Bids||Stuttgart: 1416||Pendleton: 1416|
|New Crop||Stuttgart: 1230||Pendleton: 1237|
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,