Corn is trading slightly higher this morning with July leading the way up after a disappointing close on Friday which led the contract to lose 31-3/4 cents on the week.
There is a bullish argument concerning the limited number of deliveries for the May contract and the fact that it went off the board 80 cents above current July futures.
The US Department of Ag announced on Friday an atypical case of mad cow disease in an older beef cow in South Carolina but the animal did not enter slaughter and no trade impacts are expected.
Friday’s CFTC report showed non-commercials buying back 17,658 contracts and reducing their net short position to 91,985 contracts.
Soybeans are trading higher and are possibly gaining support from Argentina’s drought stricken soybean crop. Soybean meal and oil are mixed with losses in the front months and gains in deferred.
Argentina’s soybean harvest has stalled slightly and is 72% complete. The USDA has not changed their estimate of 27 mmt but that production is likely much lower between 20 and 24 mmt.
China’s soybean imports from Brazil fell by 16% in April compared with the same month a year ago after delays to their harvest.
Friday’s CFTC report showed funds as net sellers of 24,517 contracts reducing their net long position to 23,942 contracts.
Wheat is lower this morning as a more favorable weather pattern brings relief to areas in Kansas, Oklahoma, and Texas which are dealing with drought.
The HRW wheat crop tour in Kansas has wrapped up and indicated that production will be the lowest in 66 years. Yields are expected to be better than earlier estimates, but large levels of abandonment will cut into production.
Ukraine’s port of Pivdennyi said Russia is sabotaging its operation by not allowing inspections of inbound vessels in violation of the brokered agreement.
Friday’s CFTC report showed non-commercials as buyers of 4,137 contracts of wheat, reducing their net short position to 112,769 contracts.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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