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Market Report


S&P -1.13
Nasdaq +7.14
Dow +15.00

Stocks struggled for direction in light trading Today, bouncing in and out of positive territory. Traders said few shares were changing hands, due to both the upcoming holiday weekend and a busy investor conference schedule. http://www.wsj.com/articles/global-stocks-down-after-g-7-finance-meeting-ends-in-deadlock-1463989995

 

Grain Markets 11:20am

July Corn +3’0@3.97’4
Dec Corn +3’0 @ 4.02’6
July Beans -13’0 @ 10.61’2
Nov Beans -14’0 @ 10.35’4

 

USDA planting progress report due out this afternoon 3pm.

 

Corn seeing some strength this am as concerns of weather have slowed corn planting and there is talk of acres being switched to beans.  Beans seeing some weakness as well as soy oil and soy meal.  We will need to see how it plays out over the next couple of weeks.  Demand for corn remains strong in both exports and ethanol.

Looking forward weather may be the story, but so is money flow.  As the U.S Dollar finds it difficult to gain traction the funds are interested in commodities.  Commodities seems to have found the bottom and support has come back into the equation.

 

Beans have had a significant rally caused by fund buying.  This also means the fund hold a significant “long” position.  As a consideration, these fund will eventually roll or exit.  Unless there are significant buyers, the market will feel the negativity of substantial selling.

 

Looking forward weather and acres will still be a debate and political concerns in Brazil are still a factor, both of which stand to provide bullish news.  However one has to consider the negative fundamentals overall.  That being said there are 2 sides to every story.  Sound risk management principles will be key to maximizing a rally.

 

Weather – Chance of rain every day this week.

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Greg Mockenhaupt

ProEdge Risk Management Consultant

P: (402) 685-5613 | Greg.Mockenhaupt@cvacoop.com

1007 County Road O

Oakland, NE 68045

www.cvacoop.com

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About katcountryhub
I am a graduate of Northeast Community College with a degree in journalism. I am married to Jeff Gilliland. We have two grown children, Justin and Whitney and four grandchildren, Grayce, Grayhm, Charli and Penelope. I will be covering Lyons, Decatur, Bancroft and Rosalie and am hoping to expand my horizons as time progresses!

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