Time to sell rallies in corn, wheat; funds active in soybeans

Weather moves to the sidelines

Cornfield, corn Cornfield, corn

Corn: June weather is not known for causing much yield damage unless it is followed by bad July weather. For that reason, we will once again be sellers on any sizeable bounce in new crop. Weather started the corn bounce, a drop in the dollar can accelerate it and all of this is happening before the crucial weather risk time frame…Ryan Ettner
Soybeans: We should see macros continue to affect the soy complex moving forward as the fund traders who manage large pools of capital will be entering and exiting the market based on capital needs in other markets…Cordon Sroka

Wheat:  The funds have pretty much moved to the sidelines being long an estimated 1,600 contracts coming into today. Allendale looks for the market to struggle to rally in the near term With wheat harvest moving into full swing and corn now trading less than wheat on the board we look for rallies to be sold.…Jim McCormick

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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