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Upward move for corn, soybeans will require evidence of tight supplies: Durchholz
A veteran market analyst wonders how much strength remains for corn and soybean prices. Dale Durchholz says maintaining a bull market requires a constant supply of positive news.
“I’m not necessarily bearish,” said Durchholz, “but I see a market right now that I think might be running out of bullets at least for the short term.”
The outlook for weakness in the dollar will provide near-term strength for commodities, according to Durchholz, speaking during the recent virtual National Association of Farm Broadcasting Convention. But with the early talk about problems in Brazil, and to a lesser degree in Argentina, he says he wonders whether there’s enough steam in export demand for the market to go higher.
“When you look at beans, and with all the export sales you’ve already put on the books, you know you really kind of go ‘is there really a lot left in this market to give a big push to the upside,’” he said.
It might require evidence of fewer supplies for the market to move significantly higher, said Durchholz, “until we get some more influence, some more news that would suggest this thing could get even tighter yet.”
