Corn is trading mixed this morning with July a bit higher and Dec lower. With the recent selloff in US corn prices, the US is becoming more competitive with Brazil.
In both Brazil and the US corn production estimates are positive due to favorable weather and corn sowing that is being favored in the US.
The recent rainfall in the US has slowed planting a bit but helped soil moisture in areas like Nebraska and western Iowa which were very dry.
Friday’s CFTC report showed funds adding to the their net short position in corn by 102,849 contracts bringing their total net short position to 118,146 contracts.
Soybeans are trading higher along with both soybean meal and oil, and crude oil is higher again as well which is offering support along with Argentina’s perpetually shrinking crop.
Argentina’s struggling crop is providing an offset to Brazil’s record crop which is keeping soybean supplies tighter than expected, and Brazilian soybeans are being shipped to Argentina to their crushing plants.
Brazilian soy exports reached 12.08 mmt in May versus just 10.27 mmt for the same month a year ago.
Friday’s CFTC report showed funds as sellers of soybeans by 30,835 contracts reducing their net long position to 56,373 contracts.
Wheat is trading higher again this morning as traders grow more concerned about the Black Sea grain deal’s potential non-renewal on May 18. Poor crop ratings in the US have also been supportive.
No new ships were authorized to carry out Black Sea grain exports last Friday after a meeting with Ukraine, Russia, Turkey, and the UN. Daily inspections of previously authorized ships continue however.
An estimate for Oklahoma wheat production was cited at 54 mb earlier this week, far less than the 68.6 mb last year and the 115.1 mb produced the year before.
Friday’s CFTC report showed funds adding to their net short position by 13,312 contracts, increasing that net short position to 126,324 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.
