July corn is trading higher this morning and is getting support from the large premium left by May corn now that it is off the board. December is slightly lower under pressure from good US weather and large supplies of Brazilian corn.
Higher wheat prices are giving some support to corn as wheat production in the US is struggling with many producers abandoning fields due to drought.
Rains fell over the northwestern Plains and Minnesota with much of it falling over dry areas but some of the rains causing delays for producers as they wait for fields to dry.
Friday’s CFTC report showed funds lightening up on their short position a bit, buying back 8,503 contracts for a net short position of 109,643 contracts.
Soybeans are finding support this morning after falling to the lowest levels this year in the Nov contract. Soybean meal is higher while soybean oil is lower despite higher crude oil.
The US soybean crush for April is being estimated at 174 mb which is 2.7% higher than April of last year, but down 6.2% from the previous month.
The soybean harvest is now complete in Brazil, and producers are hesitant to sell spot beans when they are able to store them. Some producers are opting to exchange soybeans for inputs and fertilizers for next year’s crop.
Friday’s CFTC report showed non-commercials as sellers of 7,914 contracts, decreasing their net long position to 48,459 contracts.
Wheat is trading higher this morning as the HRW wheat quality tour begins today and traders will get an idea of just how bad the crop is.
The USDA estimated HRW wheat production at 514 mb which was less than expected. Winter wheat production for Kansas was estimated at 191.4 mb, the lowest in 50 years and down 244.3 mb last year.
There has still been no word on whether Russia will agree to extend the Black Sea corridor with a deal that expires this Thursday. Ukrainian officials are preparing for no extension and no talks are planned for this week.
Non-commercials added to their large net short position last week selling 9,418 contracts bringing the total net short position to 116,906 contracts.
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