Corn is slightly higher this morning, with March futures preparing to challenge the psychological $5 level.
The next two months of weather will be crucial for Brazil’s second-crop corn. A delayed soybean harvest has slowed corn planting, with CONAB reporting just 5.3% complete to start the week, compared to 19.8% last year.
Strong demand has been the main driver of fund buying in corn. However, for prices to sustain above $5, the market will need continued bullish fundamentals, especially given the near-record fund length in corn.
Soybeans are trading lower this morning after a sharply higher start to the week that led to the highest soybean price in six months.
Continued moisture and normal to below-normal temperatures have limited soybean harvest opportunities in Brazil. CONAB reported yesterday that harvest was only 8% done to start the week compared 14% last year.
While good rainfall has provided some short-term relief to much of Argentina, heat and a return to drier conditions are expected in the coming week.
All three wheat classes are trading higher this morning after a strong start to the week.
After the higher close in Chicago wheat futures yesterday, all three wheats are now trading over their 100-day moving averages. With the funds still heavily net short wheat futures, this technical development could lead to buying interest.
Strong harvests reported in both Argentina and Australia will lesson the worry of potential reductions in world wheat production due to recent cold snaps in Russia and the U.S.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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