Corn is trading higher to start the week but remains in its tight rangebound pattern over the past two weeks. Weather has been favorable which could see crop conditions improved, but the lower prices have increased corn demand.
Later today, the USDA will release its Crop Progress Report, and trade is expecting crop conditions to either remain steady or improve from the previous week. The past three days have been dry in the eastern Corn Belt, but the extended forecast is favorable.
Friday’s CFTC report showed that as of July 16, funds bought back 10,589 contracts of corn which reduced their net short position to 343,396 contracts.
Soybeans are trading sharply higher this morning following new yearly lows that were made last week. Funds are likely covering a portion of their short position as August approaches with a potentially drier forecast. Both soybean meal and oil are higher as well.
This morning, exporters reported the sale of 105,000 metric tons of soybean meal and cake to unknown destinations for delivery in the 24/25 marketing year. As in corn, with prices so low, export demand may improve.
Friday’s CFTC report showed funds adding to their short position in soybeans as of July 16. They sold 13,145 contracts which increased their net short position to 185,750 contracts.
All three wheat classes are trading higher this morning with Chicago wheat leading the way higher. With the winter wheat harvest virtually complete, focus has shifted to spring wheat production, and weather in the Dakotas has turned dry with temperatures climbing.
The most recent drop in wheat prices has spurred new demand on the world market. While this is beneficial in the big picture, the majority of the business has been filled by Russia with their cheaper export prices.
As of July 16, funds sold 6,749 contracts of Chicago wheat which increased their net short position to 75,886 contracts. Funds sold 3,085 contracts of KC wheat which increased their net short position to 43,896 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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