Markets are slightly higher this morning after yesterday’s selloff. Yesterday’s weakness was felt in all commodities as bullish updates from China and the US didn’t come. Funds sold 12,000 contracts of corn and 8,000 contracts of beans.
South American weather hasn’t been ideal, but production updates from their government indicate they anticipate the crop to be 95.6 mmt which is up 15.6 mmt from last years.
Look for the markets to remain in a sideways pattern as traders monitor South American weather and the daily saga between the US and China. Traders are hopeful that we will see a China trade deal soon or at least an additional good faith purchase as negotiations progress. The US government shutdown could impact any sales news with the lack of weekly export reports.
Have a Safe Weekend!