Corn futures are trading lower this morning with the March contract now trading below the 21-day moving average for the first time since the WASDE report was released on the 10th. The move comes despite a decline in the dollar index.
Over the weekend, Colombia blocked an incoming deportation flight from the US prompting President Trump to impose a 25% tariff against the country along with sanctions, but as of this morning, that has been put on hold after Colombia agreed to make a deal. The uncertainty has pressured commodities.
Friday’s CFTC report saw funds as buyers of corn by 19,244 contracts as of January 21 which left them with a net long position of 311,768 contracts.
Soybean futures are trading lower this morning following the news of potential Colombian tariffs, and the March contract is now 30 cents off last week’s high. Both soybean meal and oil are trading lower as well.
President Trump is eyeing February 1 to impose a 10% tariff on Chinese imports. The commodities market is bracing for a rollercoaster ride as headlines flip between optimism and tension on the tariff front.
Friday’s CFTC saw funds as buyers of soybeans by 5,497 contracts as of January 21. This left them with a net long position of 40,330 contracts.
All three wheat classes are trading lower this morning along with the rest of the grain complex. March Chicago wheat is now just 13 cents off its contract lows as exports demand remains sluggish.
Frigid temperatures over the past week have reportedly killed up to 15% of the winter wheat crop in parts of the US Plains and Midwest according to the Commodity Weather Group. The lack of snow coverage made winter wheat vulnerable to winter kill.
Friday’s CFTC report saw funds as buyers of Chicago wheat as of January 21 leaving them net short 91,792 contracts. They bought 2,475 contracts of KC wheat leaving them net short 35,131 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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