Fresh fundamental data is now lacking ahead of supply and demand numbers as we experienced an inside trading day. Continued light volume confirms that traders remain more comfortable on the sidelines.

OUTSIDE MARKETS: In Chicago, new crop corn and wheat traded within the previous sessionΆs price movement. November soybeans touched new highs for the month but settled below yesterdayΆs close as we near the highly anticipated August USDA report and the bearish weather forecasts remain unchanged. An initial rise in the stock market due to healthy economic data was capped off after earnings for large corporations such as Tyson Foods fell and we continue to watch developments in Russia.

General Comments: After making monthly highs during yesterdayΆs session, today experienced an inside trading day on continued light volume. Unable to attract fresh buying, light volume was seen yet again as traders are cautious ahead of the August 12th WASDE release. In the physical market, net sales of 251,000 bales to 18 countries were seen on this morningΆs export sales report; China, Vietnam and Turkey were the three largest buyers respectively. As the previous season officially came to an end, exports totaled 9,575,000 bales and is almost one million bales below the USDAΆs projection of 10,500,000 bales. The certified stock has fallen to 112,885 bales, down 13,476 from the beginning of August and nearly double what was seen August 7th of 2013.

Any flood of bullish news is brushed off by the rationality that exists is the production data globally and domestically; we still anticipate the U.S. Department of Agriculture to raise our crop size and perhaps another country in Asia whether it be big or small. World inventories, estimated at 105.68 million bales on the July report, are rumored to increase by up to half a million bales as well.

Sure, West Texas could use more rain and the Indian crop is behind but the bearish dominance in this market remains prevalent.