Imaginary Fundamentals Impact Corn & Soybeans Prices

NASA has debunked the relevance of crop ratings, which are record high this year. Corn acreage is in good condition, leading to strong carry and commercial carry coverage. Basis levels have shifted due to increased grain ownership by commercials. Weak basis indicates growing available stocks, affecting corn prices negatively.

US corn and soybean export demand is slowing, with pace projections down 400 million bushels since November. Demand peaked before the tariffs and trade wars. The US remains a secondary player in global markets, with South America increasing production. Trade negotiations won’t impact supply and demand dynamics in the US.

Live and feeder cattle futures are at new highs due to tight supply and strong demand. Fundamentals remain strong, supporting higher prices, despite technical patterns suggesting otherwise. Cattle futures spreads are bullish, with strong demand despite high prices. Funds continue to buy cattle and hogs while shorting corn and wheat positions.

Fund money will flow where fundamentals are bullish, leading to net long positions in livestock. There is no wide-scale liquidation expected in the livestock sector unless fundamentals change. Energy markets show pressure, with natural gas dropping, while other markets remain quiet. Attention will shift to the July FOMC meeting for potential market impact.

Read more at Yahoo Finance: Why “Imaginary Fundamentals” Are Crushing Corn & Soybeans