Corn is trading lower again this morning and is now just 1 cent off contract lows in the September contract following Crop Progress ratings showing the corn crop improving again. Yesterday’s new tariff announcement has not been friendly either.
Yesterday’s Crop Progress showed good to excellent ratings for corn improving 1 point to 73%, and poor to very poor ratings were reduced to just 5% of the crop. 18% of the crop is silking.
Yesterday’s CFTC report showed funds as sellers of corn as of July 1 by 24,181 contracts. This increased their net short position to 206,463 contracts, although it is likely now much larger after yesterday’s move.
Soybeans are lower to start the day with front month August leading the way lower and prices now near recent support. Soybean meal is dragging prices lower while soybean oil has recovered a bit and is trading higher.
The Crop Progress report showed soybean crop ratings unchanged from last week at 66% good to excellent which is 2 points below a year ago at this time. 32% of the crop is blooming and 8% is now setting pods.
Yesterday’s CFTC report saw funds as sellers of 23,023 contracts of soybeans which left them with a net long position of just 425 contracts. Funds sold 4,908 contracts of bean oil and sold 21,858 contracts of meal.
All three wheat classes are trading lower with KC wheat leading the way down. Despite declines in crop conditions and a falling US dollar, funds continue to short the grain markets.
Yesterday’s Crop Progress report saw winter wheat good to excellent ratings unchanged at 48% while spring wheat conditions fell again by 3 points to 50%, down from 75% a year ago at this time. 61% of the spring wheat crop is headed while 53% of winter wheat is now harvested.
Yesterday’s CFTC report saw funds as buyers of 1,596 contracts of Chicago wheat leaving them short 63,071 contracts. They bought back 1,114 contracts of KC wheat leaving them short 42,348 contracts.
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