From Agrimoney:
There are "no easy answers" to the question of where the decline in ag prices will bottom out - although this week's key US Wasde crop report could catalyse short-term gains in corn, Morgan Stanley said.The investment bank, flagging "numerous questions" from investors about when the grain price rout will end, said that demand factors looked unable to provide an answer."We see few near-term opportunities for increased demand to provide that floor," given that "all US end users" of grains have for a while been enjoying positive margins without stopping the price slide, Morgan Stanley said.Sure, on the supply side, "corn prices below global marginal production costs should eventually translate into lower global production."However, the long lags between planting and production limit the effectiveness in using these costs as a guide for finding a near-term floor."'Should provide support'The bank instead said it was focusing on the "directional implications" for prices of upcoming events, including the US Department of Agriculture's latest monthly Wasde report, on Thursday, which is expected to unveil long-awaited – upward – revisions to forecasts for US corn and soybean crops.In fact, the Wasde "should provide support" for corn futures, "while further pressuring soybeans", Morgan Stanley said.The bank forecasts US corn production this year at 13.917bn bushels – a touch below last year's record high, and well below the 14.032bn the USDA has already pencilled in, before any yield upgrade on Thursday.Bottom betsThe comments indeed come amid a rash of interest in broker forecasts for how further corn and soybean crops will fall, given the prospect of record US corn and soybean crops....MORE
Previously:
Corn 351'0
-5'0; Wheat 531'0
-4'2; Soybeans 1012'6
-8'6.
Here are the Weekly charts from FinViz:
