Soybeans started the year on an up note as all three legs of the complex closed higher; Friday's COT report showed funds were light buyers of 15,500 contracts, good news for corn bulls; Hard Red Winter Wheat regions are still under a barrage of cold weather and wind chill warnings.
December was a fitting end for a year in which none of the major agricultural contracts – corn, wheat, or soybeans – ended more than 5% higher or lower than a year ago. The corn market was particularly quiet with only a 14-cent trading range for the month and a settlement price almost identical to a year ago.
After Friday saw a late session correction, some spill over correction was seen Monday as well. March is now the lead contract and today's correction came within three cents of contract lows before finding better support.
Weekly export inspections for the week ending August 3 came in at 979,000 MT. It's similar to the previous week's movement, but it's more than one-third below what had been exported the same week a year ago in 2016. Corn exports are also slowing.
Buy low and sell high: It’s the cornerstone philosophy of trading and investing that has been pounded into us since we all looked at our first price chart. New converts to commodities, however, learn that selling high and buying back lower can be just as easy – and just as, if not more, effective in these versatile markets.
Soybeans have spiked as much as 15% higher over the last three weeks. So far, the commercial traders’ actions have accurately forecasted this year’s market behavior. In fact, it was commercial processor buying that triggered the discretionary COT buy signal we published for June 28th’s trading.