Corn: Corn, finished last week by putting in new contract lows @ $3.20 and closing the week at $3.21. Technically speaking, there is still no sign of a low and with weather remaining bearish (especially with Iowa and Illinois getting rains this week), we expect the trend to remain sideways to lower until there is a fundamental reason for a bounce. As with most grains this week, I wouldn’t expect anything major heading into the August 12th USDA crop production/WASDE report. There is still a gap above at $3.40+, but this seems less likely to get filled in the near term. The main story this week will remain weather, demand and the August 12th report.
Soybeans: Last week we finally saw the Nov soybeans break out below the upward trend they were stuck in for quite some time. There isn’t much to say besides the fact that we are going to get a large crop and it will take some serious uptick in demand for that to be neutralized, but until then, beware of more downside. The market is sitting around the 100-day Ma which may provide temporary support, but something will need to change fundamentally for this to begin moving higher again. The headline this morning is sales announced to China as well as keeping an eye on August 12th USDA crop production/WASDE report for new direction in the market, this may give us a bounce today, or at least limit downside heading into August 12th.
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