Corn is trading lower following the long three day weekend and is back below the 200-day moving average. The Crop Progress report will be released this afternoon and traders will get a look at crop condition ratings which are expected to be good.
After substantial rains last week, the forecast for this week is very light for most of the Corn Belt which should give producers a good opportunity to get planting wrapped up.
Friday’s CFTC report saw funds as sellers of corn once again. As of May 20, funds sold 18,234 contracts of corn which left them with a net short position of 103,210 contracts.
Soybeans are trading higher this morning bucking the trend from the rest of the grains which are lower. Higher palm oil and soybean oil futures are supporting prices, and July futures remain above their moving averages.
Friday’s CFTC report saw funds as sellers of soybeans by 25,753 contracts which left them with a net long position of 12,654 contracts. They sold 10,123 contracts of bean oil and 4,721 contracts of meal.
In Brazil, soybean prices have begun to increase as a result of news about the US/China trade war along with weather concerns like the flooding in Argentina.
Wheat is mixed to start the day with Chicago and KC trading slightly lower while Minneapolis is higher. Despite this morning’s quiet trade, this has been a strong week for wheat with the July contract up 18 cents and well off the contract low.
Yesterday’s export sales report was friendly for wheat with 869k tons sold, up from 805k last week. Top destinations were to the Philippines, unknown destinations, and Japan.
There have been very heavy rains recently in Argentina, specifically North of Buenos Aires where 6 to 10 inches of rain caused severe flooding. This precipitation has caused delays in wheat planting with only 3.4% of the crop planted.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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