The soybean market found good support on Thursday from the strength in corn and in the Brazilian real and on concerns that dry weather may persist over parts of the Western Corn belt. The ability of the market to hold near the bottom of the trading range that has been in place since September brought increased technical buying late in today's session. You can count 5 waves down from the May highs which should bring further selling in beans. You have to be careful thinking what should happen in here with the ideas of why soybeans are where they are anyhow. Fundamentals point to lower prices however why are we not trading lower? Any rallies should be good hedging opportunities .June is not a bullish month for grain prices.
Friday morning we had another impressive export number in corn. This is the 5th week in a row of over 1 million metric tons of corn for export. Corn demand is hitting on all cylinders. The corn market traded higher on these expectations of strong exports and on concerns that dryness may persist in parts of the Western Corn Belt.
Wal-Mart is reportedly considering selling E85 and other alternative fuels at their stations and using biofuels to their trucking fleet. Wal-Mart owns and operates about 383 gasoline stations and has about 1000 stations operated by third party providers, the largest of which is Murphy Oil.
US weather forecasts will continue to dictate corn market price direction. The market could put in a larger risk premium into price ahead of the weekend on the possibility that dry weather might persist in the northwestern Corn Belt in upcoming weeks.
