Corn was trading in a relatively steady range earlier last night but began selling off around 3am. Economic issues in China were the biggest bearish factor.
Overnight, a Hong Kong court ordered the real estate property giant, China Evergrande, to liquidate. The company now owes 300 billion. This news adds fresh concerns about the Chinese economy and their demand.
International corn prices have risen recently, but in Brazil they have fallen as a result of anticipation of a large Brazilian and US crop.
Friday’s CFTC report showed funds adding to their short position by 4,743 contracts, increasing it to 265,285 contracts. That is the second largest short position in history.
Soybeans are trading lower this morning with pressure from the news out of China along with lower prices in both soybean meal and oil.
Overnight, March soybeans reached its lowest price since June of 2023. There is some technical support around $11.85, but after that, the contract low is down at $11.45.
In Brazil, 9% of the soybean harvest is reportedly complete which compares to 4.4% at this time last year. Northern Brazil is getting a bit too much rain while Argentina is dry in the short term forecast.
Friday’s CFTC report showed funds as sellers of 15,045 contracts of soybeans which increased their net short position to 91,842 contracts last week.
All three wheat classes are trading lower this morning with KC wheat leading the way lower. Wheat is down with the rest of the grains due to bearish global news.
Fighting in the Middle East is escalating after the US said that Iranian backed militants killed three US service members. Retaliation is expected, and shipping companies are expected to stay out of the Red Sea.
Argentina has said that China is now open to importing Argentinian wheat for the first time. This comes after Argentina wrapped up harvest with production better than expected at 15.1 mmt.
Friday’s CFTC report showed funds as buyers of 4,034 contracts which reduced their net short position to 64,541 contracts as of last week.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
