The grain market action is acting strange. AgriSompo North America market analyst Sterling Smith says there are several factors playing into the situation. “The producer price index did not bring great news. People were hoping the month-over-month number would ease up a bit. That didn’t happen,” says Smith. “The year-over-year number increased again. The corn market is doing ok and the soybean market turned around.” Smith thinks trader’s attention is turning to weather. “The market’s been pressured, because of fund-selling. If you look at basis levels, they’ve been solid. That tells me corn demand is still pretty good. Export sales this week were lousy, but I think we’re going through a period of realignment.”
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