Last week’s dramatic drop in prices stemmed in part from bearishness by processors of both soybeans and corn, and the big pull back could prompt some buying this week. Soy crush margins turned higher on the selloff, which was caused by plants that believed they have enough beans to squeak by until new crop supplies arrive. Ethanol prices plunged on fears the Renewable Fuels Standards could end, making the biofuel very competitive with gasoline. While soybeans are lower again this morning, corn and wheat are trying to move higher.
Senior Editor Bryce Knorr offers his insight into overnight trade, listen using the audio tool on this page.
Bryce Knorr first joined Farm Futures Magazine in 1987. In addition to analyzing and writing about the commodity markets, he is a former futures introducing broker and is a registered Commodity Trading Advisor. He conducts Farm Futures exclusive surveys on acreage, production and management issues and is one of the analysts regularly contracted by business wire services before major USDA crop reports. Besides the Morning Call on www.FarmFutures.com he writes weekly reviews for corn, soybeans, and wheat that include selling price targets, charts and seasonal trends. His other weekly reviews on basis, energy, fertilizer and financial markets and feature price forecasts for key crop inputs. A journalist with 38 years of experience, he received the Master Writers Award from the American Agricultural Editors Association.
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