Corn is trading higher this morning and continues to hover just above the 4 dollar mark. At these prices, demand has picked up significantly which is indicated by basis that improved last week and corn spreads that tightened.
Weather has improved dramatically in South America with consistent rains over the past few weeks which has seen the pace of corn plantings pick up. Argentina is estimated to be over 25% complete.
Friday’s CFTC report showed that as of October 15, funds sold 63,259 contracts of corn which sharply increased their net short position to 86,988 contracts. This past July, they held a net short position of over 350,000 contracts.
Soybeans are trading higher this morning but have been in a downward trend since the beginning of the month losing 81-3/4 cents so far. Soybean meal is slightly higher and soybean oil is up over 1% with an increase in crude oil.
While the improvement in Brazil’s planting conditions with the coming of the monsoonal rains has weighed on soybean prices, the need for US commercials to blend poorer quality beans from the south with higher quality N. Midwestern beans has firmed basis and likely the spreads.
Friday’s CFTC report said that as of the 15th, funds were sellers of 18,543 contracts of soybeans which increased their net short position to 40,341 contracts.
All three wheat classes are trading higher this morning after rains that were forecast to fall in the southern Plains this past weekend did not materialize leaving the region dry once again. The rains that were expected to fall in Kansas, Texas, and Oklahoma fell in Colorado and New Mexico.
Australia’s 24/25 wheat production is expected to climb 18% to 30.62 million metric tons when compared to last year, according to the Commonwealth Bank of Australia, due to favorable growing conditions in New South Wales and Western Australia.
Friday’s CFTC report showed funds as buyers of 3,436 contracts of Chicago wheat which reduced their net short position to 26,013 contracts. Funds sold 604 contracts of KC wheat which left them short 6,488 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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