Corn is trading slightly lower this morning and has faded from higher prices overnight. Cash markets and basis levels are indicating that corn demand is higher than amounts being sold by farmers which should cause prices to increase.
In Brazil, CONAB released its new estimates for grain production last week and it sees planted acreage falling very slightly by 9k hectares, but production increasing to 119.81 mmt thanks to an increase in yield expectations.
Friday’s CFTC report showed funds buying a large amount of corn, 87,946 contracts as of November 12, which left them net long 109,989 contracts. Funds have not been this long since March of 2023.
Soybeans are trading lower this morning and have faded from overnight highs that saw prices up to 6 cents higher. Palm oil has begun the week with sharp losses that have bled into soybean oil and are weighing on soybean prices. Soybean meal is trading higher.
On Friday, the NOPA crush report showed that 200 million bushels of soybeans were crushed in October which was 3.2 mb above expectations. Soybean oil stocks came in below expectations. The large crush numbers have created an excess amount of soybean meal which has caused the lower prices.
Friday’s CFTC report showed funds as buyers of soybeans as of November 12 by 15,576 contracts which still leaves them net short 54,536 contracts.
All three wheat classes are trading higher this morning and seem to have put in a low last Thursday as futures had gotten very oversold. US winter wheat is moving into dormancy so rainfall in the southern plains is no longer as helpful.
In Russia, farmers had only harvested 124.3 mmt of grains as of November 1 which compares to 141 mmt at the same time last year. The crop had been harvested over 95% of sown area which is about the same as last year.
Friday’s CFTC report showed funds as sellers of Chicago wheat by 14,526 contracts leaving them net short 45,307 contracts. In KC wheat, funds sold 11,018 contracts leaving them short 25,098 contracts.
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.
