Corn play on downside as demand weak; soybeans, wheat drift

Grains and oilseeds report

Grain, harvest Grain, harvest

Corn: Poor exports and ethanol demand have been limiting any outlooks of a fast bounce in this market. It continues that each side has a case, but until a chart breakout can occur, we have to think this market is likely to be stuck range bound for the medium-term outlook. All the bulls need for an active bounce is a pickup of exports or ethanol. Bears continue to be rewarded for selling bounces due to these poor demand numbers, however…Ryan Ettner

Soybeans: The question the trade needs to ask is, Can we provide all the beans that they want? Weekly export inspections came in at an impressive 61.422 million bushels. This was way above the trade’s anticipated range of 46-49 million bushels. Without fresh news to break the market out of its near-term trading range, we anticipate the soybeans to continue to trade in a sideways range…Jim McCormick
Wheat: Winter wheat was 81% planted this week -- in line with the average pace. Emergence was at 49%, which is 7% behind the five-year average. The moisture deficit in the western wheat growing regions is probably to blame for this. Continue to look for a sideways to lower grind…Cordon Sroka

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.

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