Soybeans and wheat closed with double digit losses on Friday while corn stayed near unchanged. This appears to be a liquation of the inter-commodity spreads ahead of the weekend. Ever since the January report there has been a noticeable change in fund positions in corn, wheat, and soybeans. This can be viewed in the following chart which includes one long wheat, one long soybean, and two short corn all in the front month contracts.
Daily Continuous Chart
Corn’s strength was likely derived from the large purchase by Egypt on this morning’s 8:00am announcements. They bought 340,000 MTs of corn for old crop delivery. Our export sales pace has remained rather strong for corn and probably makes up for the expected decline in feed/residual from the current lofty USDA demand estimates. The Reuters and Dow Jones poll will not be released until next week. Until the reports are released on the 31st we expect markets to remain in their current ranges. If you have any questions please give us a call. Have a great March Madness weekend!
Managed Money Position Changes through Tuesday, March 18th (futures and options combined):
Net Position Change Net Position
Corn: +18,299 +227,860 contracts (1.14 billion bushels)
Soybeans: +52 +198,672 (0.99 billion bushels)
Wheat: +13,521 +24,036 (0.120 billion bushels)
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