Good morning!
World markets are in a flux again today, with China's stock market leading the charge lower by dropping another 7% overnight. US equities are following suit so far this morning, with the DOW and S&P Indices both off about 2%. Lower crude oil aren't helping the cause, as nearby contracts are down another dollar/barrel so far, now trading below $33/barrel - a new 12-year low.
Grains have no good reason to buck the negative trend today, and thus far are trading lower, as corn is down 3 cents and soybeans are off 5 cents. Weekly export figures released this morning did nothing to relieve the pressure, as corn and wheat sales were both below expectations, and soybean numbers were within the expected range.
The overall bearish tone may give managed money traders a reason to add to their short positions, but it will be interesting to see if the funds actually try to even up their positions leading up to the big January 12 USDA reports (production/stocks/S&D), which has historically been a market-mover.
Opening calls
Corn: 2 lower
Beans: 4 lower
Have a great day!
@fccoopgrain
Farmers Cooperative Co. issued this content on 2016-01-07 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-07 14:46:45 UTC
Original Document: http://www.fccoop.com/markets/market-commentary/?CommentaryID=2655
