Grain Markets Commentary
WASDE today as funds go short soybeans
Grains and Oilseeds traded mixed overnight before the October WASDE report.
Analysts are looking for modest cuts in production and those levels will likely lead to growing balance sheets with demand numbers that should be trimmed in both corn and soybeans exports.
We expect to see neutral to bearish reports and will have to see if the markets have priced enough downside into prices or if we need to see more pain.
12.46 & 4.70 are support areas we will be watching.
Soybeans continued to put in new lows for the move yesterday by testing 12.50 area and again overnight.
Funds have gone short soybeans and are estimated to be net short 5000 contracts.
Not a big position but a net short, nonetheless.
Brazil has some hotter and drier risks in the north.
Argentina remains dry and under stress across 75% of their growing region but have widespread rains forecasted for the 11-15 day.
Support and resistance
4.85 & 12.50 for support
5.06 & 12.85 for resistance