The Road ahead (the 3rd week)

On Friday, Informa said the USDA will likely raise its corn and soybean production forecast. Moreover, Commodity brokerage INTL FCStone also raised its corn and soybean forecasts last week as harvest reports topped expectations.

Therefore, I believe that both soybean and corn prices would shift down next week, I will short on soybean for six contracts again and three contracts on corn.

The wheat market, however, is being supported by supply concerns arising out of Australia where the crop is suffering from lack of moisture. Australia’s wheat production is likely to decline from the government’s most recent estimate. I will cancel all my short contracts on wheat