Yesterday’s Close: May corn futures finished yesterday’s session down ½ of a cent, trading in a range of 6 cents. Funds were estimated sellers of 7,000 contracts.
Fundamentals: Corn futures retreated again yesterday on chatter of a good South American crop (not new news in our minds). We continue to believe that there will be a growing concern on spring planting in the Midwest, that coupled with a large net short position from funds is keeping us optimistic. April option expiration is this Friday, that is likely playing some role in the price action.
Yesterday’s Close: May soybeans finished yesterday’s session down 2 cents, trading in a range of 9 ¼ cents. Funds were estimated sellers of 4,000 contracts.
Fundamentals: Conflicting headlines yesterday afternoon spiked volatility for a brief amount of time. The first headline read: “SOME U.S. OFFICIALS SAID TO SEE CHINA WALKING BACK TRADE OFFERS”. In less than 5 minutes there was another headline that read: “trade talks are in the final stages and that the U.S. trade representative and Treasury secretary will fly to Beijing the week of March 25.”. Though the headlines did move the markets, the reactions have been less and less over the last several months as we live out the real-life version of “The Boy Who Cried Wolf”.
Yesterday’s Close: May wheat futures finished yesterday’s session up ¾ of a cent, trading in a range of 8 ¾ cents. Funds were estimated sellers of 2,000 contracts.
Fundamentals: President Trump met with President Bolsonaro of Brazil yesterday. A lot of their discussions revolved around trade, both parties agreeing to take steps in lowering barriers on agricultural products like wheat, pork, and beef. Though we don’t think this is a significant headline, it is certainly a silver lining.
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