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Several factors weighing on commodity markets to start the month

The co-founder of AgMarket.net says it was a rough start to the month in the commodity markets.

Matt Bennett tells Brownfield that timely rains for much of the Corn Belt are just one factor.

“Corn and beans, wheat, they all just absolutely got pummeled.”  He says, “We’d had 12 straight sessions of Kansas City wheat moving lower. Of course, December corn is taking a bath as well, down over 50 cents off the high, so it’s just been a pretty rough go here.”

He says large money players exiting commodities, and disappointment over the recent U.S. meetings with China are also weighing on prices.

“Rumors that China had said we probably won’t start our buying program until September. Can they get all 25 million tons of beans bought? Yep, I think they can.”  He says, “But the trade’s not been real happy with the fact that they haven’t bought any beans for a while. So, the trade has essentially just been in sell off mode.”

Bennett says some areas have seen basis levels improve to offset a portion of the losses, but he’s not optimistic about a summer futures rally given current weather outlooks.

AUDIO: Matt Bennett – AgMarket.net