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No June rally, but what will July bring?
At least one market analyst isn’t ready to give up on a summer rally.
Al Kluis with Kluis Commodity Advisors tells Brownfield July could be an exciting month.
“Which would be counter-seasonal, but we’ll have to see what the reports say at the end of the month. But I don’t really see anything on the weather forecast right now that would break us out of the current trading range.”
Kluis is referring to tomorrow’s USDA quarterly stocks and revised planting estimates.
Regardless of those numbers, he says Chinese purchases could drive prices higher in July.
“China is very adamant that they are going to honor the phase one trade agreement. They better get going (because) they’re way behind where they should be. But if they have the intention of fulfilling the $36.1 billion in ag purchases, that’s going to be a lot of corn, soybeans, pork, ethanol, sorghum.”
Kluis says China has become very active in the soybean market, and he thinks activity is about to pick up in the corn market as well.
