A warmer, drier forecast for Brazil through the end of the month is adding weather premium back into the corn market to start the week.
Managed money funds shed more net long positions than expected in Friday’s COT report, cutting holdings to 132,000 contracts as of last Tuesday—down sharply from over 361,000 in early February.
U.S. corn demand remains solid, with export sales running 25% ahead of last year, while both ethanol demand and production continue to outpace last year’s levels.
Soybeans are slightly lower to start the week as harvest continues to progress in both Brazil and Argentina.
Weakness in palm oil futures is adding pressure, though midday soybean oil futures are holding onto slight gains.
Despite recent weakness, soybean futures continue to find solid support around the $10 level. This psychological threshold has acted as a magnet for front-month futures since September, with prices spending very little time trading significantly above or below it.
Wheat prices are higher to start the week as warmer, drier-than-normal conditions persist across the U.S. Plains.
Strong export demand and a weaker U.S. dollar are likely encouraging fresh buying after last week’s price decline.
Traders remain cautious as reciprocal tariffs are expected to take effect in early April, adding uncertainty to trade relations.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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