Corn is trading higher this morning but has backed off its overnight highs as the dry and hot forecast continues and stresses the crop.
The forecast for the next 7 days offers more rain chances in the Corn Belt than the previous week but is expected to be light, and temperatures are expected to drop later in the week.
According to Conab, Brazil’s second crop corn harvest was 72% complete as of August 12 which was down from 86% this time a year ago. Rains have been delaying their progress.
Friday’s CFTC report showed non commercials as sellers of corn last week by 45,924 contracts increasing their net short position to 72,580 contracts.
Soybeans are significantly higher this morning along with soybean meal and oil as the hot and dry weather affects soybeans most directly as they fill pods.
While Chinese economic growth struggles with deflation and poor economic data, their food demand remains robust with November beans on the Dalian exchange trading at the equivalent of $19.11 a bushel, a new high for this year.
Chinese imports from the US fell by 63% from the previous year as they source their soybeans from Brazil.
Friday’s CFTC data showed funds as sellers of soybeans by 13,362 contracts as of August 15 reducing their net long position to 50,719 contracts.
While corn and soybeans trend higher, wheat is lower and has struggled to gain momentum on poor demand that is effecting global prices.
Ukraine is attempting to use a new “humanitarian corridor” to export grains that will hug the western coastline near Romania and Bulgaria.
Egypt’s total consumption of wheat is expected to reach between 19 and 20 mmt. They are expected to import 10 mmt to meet demand which is 50% of their total consumption.
Friday’s CFTC data showed funds piling into their short position increasing it by 10,195 contracts, leaving them net short 65,590 contracts.
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