Corn is trading lower this morning with the December contract breaking out of its recent trading range and making new contracts lows. The pressure comes from a good weather forecast and the expectation of large yields.
In Brazil, 94.2% of the 2024 second crop corn has been harvested which compares to 82.9% at this same time last year. The summer corn planting is 4.2% finished as of August 22 and compares with 7.5% completion at this time a year ago.
Friday’s CFTC report showed funds as sellers, adding an additional 8,889 contracts to their net short position. This left them with a short position of 257,896 contracts.
Soybeans are lower to start the week, but unlike corn, have not made new contract lows. The November contract is 8 cents above its low which was put in on the 16th of August. Soybean meal is lower this morning while soybean oil is trading slightly higher.
The ProFarmer crop tour wrapped up last week and showed big pod counts for soybeans that could result in big yields. The tour estimated soybean production at 4.7 billion bushels with an average yield of 55 bpa. This would be higher than the USDA’s estimate of 4.6 bb and 53 bpa.
Friday’s CFTC report showed funds as sellers of soybeans. They sold an additional 8,311 contracts which left them net short 182,758 contracts which is near their record short position.
All three wheat classes are trading lower this morning with Minneapolis wheat leading the way lower. All three classes have also made new contract lows. This has come despite a large sell-off in the dollar which is normally supportive for wheat.
There have been concerns for the quality of the spring wheat crop that is being harvested with cooler temperatures and rain impacting quality.
Friday’s CFTC report showed funds as buyers of Chicago wheat by 20,303 contracts which left them net short 52,985 contracts. Funds sold 2,495 contracts of KC wheat which left them net short 35,319 contracts.
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.
