Gary's Blog 09/18/20 3:41:10 PM|
9-14-20 Crop Condition
G/E TW LW AVG OH
Corn 60% 61% 65% 47%
Beans 63% 65% 63% 54%
China continues to buy and the bean market continues to soar. Prices need to curb demand have not yet been discovered (another sale today) so up we go. Wheat and corn got in on the action as well closing 18 and 3 cents higher. The counter seasonal rally we are experiencing has been a fantastic opportunity to lock in harvest bushels at profitable levels. As combines start to roll look for update yield data and extended hours on the website.
The board was all green today with soybeans leading the charge higher. Its about demand in Chicago more notably “Chinese demand.” China has been a HUGE buyer of US ag products the past few months. Combines are starting to roll across the Midwest with early yield reports being “solid.” How this translates throughout harvest remains to be seen. Corn was finally able to trade up and out of its recent range finishing 5 ¾ cents higher. The current market place can be broke down as follows: 1) Funds are in record long territory 2) RSI levels are showing “extremely over bought conditions” 3) When the Chinese buying stops the parties over.
Markets took a breather today in a classic turnaround Tuesday. We knew this day was inevitable as the market is extremely overbought on the recent rally. Beans have rarely seen red in the past 30 days. Even a solid sale to China couldn’t fend off the selling which was normally the cure for early session pressure. Yield reports will start to become more common as harvest is just on the cusp for most in NW Ohio. The easy money for market longs has been made as Funds sit on nearly record large positions. Profit taking will be noted from time and time and fresh export sales are needed to keep feeding the bulls. (that or lower yields on Oct’s Crop production report) Harvest hours will start to be posted to the website under the “hours tab.”