Corn is trading sharply lower at midday following heavy rains throughout the Corn Belt and flooding in the northwestern Belt. This would be the third consecutive day of lower prices, and earlier today, December futures took out the February lows and traded at the lowest levels since September of 2021.
Later today, the USDA will release its crop progress report, and most trade estimates are calling for a reduction in the good to excellent ratings by another 2 to 5 percentage points following last week’s hot and dry conditions.
CFTC data was delayed due to the holiday and will be out later today, but it is expected that funds will have added to their net short positions which was over 200,000 contracts last week. The trend continues lower as South American harvest progresses and US weather has rain in the forecast.
Soybeans are mixed at midday with the front months slightly higher but new crop contracts trading lower as prices continue to slide falling to their lowest levels since 2021 in the November contract. While forecasts are expected to be hot, there has been enough rain that has fallen and enough in the forecast to suppress prices.
Soybean meal is trading slightly higher while soybean oil is lower, and it is expected that today’s CFTC report will show that funds have been adding to their short positions in the complex.
This morning, the USDA reported private export sales of 228,000 metric tons of soybean cake and meal for delivery to the Philippines during the 2024/2025 marketing year.
All three wheat classes are trading lower today as prices continue to slide from the May highs with the July contract in Chicago wheat now $1.71 below the high made on the 28th. Prices are now sitting around the lower end of trade from earlier this year.
World weather is currently threatening for the wheat crops with both Russia and Ukraine forecast to receive hot and dry weather in the coming months, potential flooding in the US Midwest, and Australia receiving more rain than expected.
Since the end of May, Paris milling wheat futures have lost approximately 45 Euros per ton which is equivalent to about $1.20 per bushel. The market is currently mixed but is attempting to find support at some key moving averages. A rebound could offer support to the US market.
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.
