Corn is trading lower to start the day as weather forecasts have become more favorable to end July and heading into August throughout the Corn Belt. The trade deal with the EU should keep export demand from the country strong.
US ethanol stocks rose by 3.4% to 24.44 m bbl from 23.635m bbl last week. This was above analyst expectations. Plant production was at 1.078m b/d which was below the survey guess of 1.082m.
Friday’s CFTC report saw funds as sellers of corn as of July 22 by 2,610 contracts which left them with a net short position of 177,365 contracts.
Soybeans are trading lower for the second consecutive day and are back below all major moving averages with the $10.30 mark resistance for the November contract. Both soybean meal and oil are lower today as well.
Positive trade deals with the EU, the Philippines and Japan have been slightly supportive and there are trade talks occurring with China as well, but the improved forecasts in the Corn Belt and strong crop ratings have kept soybeans from rallying.
Friday’s CFTC report saw funds as buyers of soybeans by 21,412 contracts which reduced their net short position to 10,866 contracts. They bought back 12,105 contracts of bean oil and bought 3,273 contracts of meal.
All three wheat classes are trading lower this morning along with the rest of the grain complex on better weather forecasts and a sharp increase in the US dollar.
The U.S. North Dakota wheat tour concluded and pegged the final 3-day total weighted average yield estimate at 48.3 bpa from 307 fields. The average spring wheat yield was at 49.0 bpa and was from 292 fields. This compared to last year’s yields of 53.8 and 54.5 bpa respectively.
Friday’s CFTC report saw funds as buyers of Chicago wheat by 8,446 contracts which reduced their net short position to 52,041 contracts. They also bought back 4,043 contracts of KC wheat which left them with a net short position of 43,959 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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