Commodity prices gained momentum this week, following a bullish Planted Acreage report. Matt Bennett, of Ag Market, provides a brief recap, as well as predicts what lies on the horizon.
Grain markets started “with a negative tone.” However, matters quickly shifted, according to Bennett.
?On Monday, we started to see short coverings. I think some traders were saying, ?I don?t want to go into this report extremely short,? and it?s a good thing they did lift some of their shorts because you come in on Tuesday and see 92 million acres printed,? Bennett said. ?We had a little bit (of) bearish numbers, as far as Quarterly Stocks were concerned, but whenever you look at how bullish the acreage was, that certainly set the tone for the week and we?ve seen a sharp run up.?
Corn futures closed six to seven cents lower, while soybean futures closed fractionally to two cents lower. Bennett offers a couple different scenarios for the week ahead.
“If you can tell me what the weather forecast looks like, I can tell you what to expect on Monday. Bottomline, if you come in with a hot and dry forecast, then you’re going to see aggressive short covering from the funds. On the flipside, if you come in Sunday night into Monday and find out we’re going to have another dry week of weather and then going to turn out wet again, my expectation (is) most of the gains we saw this week could evaporate rather quickly,” Bennett said.
