Last Week’s Close: December corn futures finished Friday’s session down 11 ¼ cents, extending losses for the week to 13 ¾ cents after trading in a 17 ¼ cent range. Friday’s Commitment of Traders report showed funds bought back 27,588 futures through August 7th, trimming their net short position to 68,025.
Fundamentals: Friday’s USDA report was bearish, there’s no way in spinning that into a silver lining. Yield estimates from the USDA came in at 178.4, up from 174 in last month’s report and above the average estimate. Higher yields lead to a bigger than expected production number, that came in at 14.586 billion bushels. New crop carryout also came in higher at 1.636 billion bushels, up from the 1.552 we saw in the July report. If you want to be a buyer in this market, we would recommend letting the dust settle first.
Last Week’s Close: November soybeans finished Friday’s session down 42 ¾ cents, extending losses of the week to 43 ¼. For the week, futures traded in a 53 ¾ cent range. Fridays Commitment of Traders report showed funds bought back 16,853 futures through August 7th, trimming their net short position down to 64,066.
Fundamentals: Soybeans rolled over hard following the release of Friday’s USDA report. Yields, production, carryout, all came in well above the average estimate which led to a technical breakdown. The USDA has yields at 51.6 bushels per acre, this is up from the 48.5 we saw in last month’s report and above most expectations. Production came in at 4.586 billion bushels, this is up from 4.310. The carryout number came in at 785 million bushels, well above expectations and the highest on record. The ace in the whole for the bulls would be if China and the U.S. were able to strike a deal.
Last Week’s Close: September wheat futures finished Friday’s session down 17 ¼ cents, putting prices in negative territory for the week by 12 ¼ cents. Futures traded in a 40 ½ cent range for the week. Funds were estimated buyers of 15,751 futures through August 7th, extending their net long position to 53,732 futures.
Fundamentals: Wheat rolled over Friday along with corn and beans, that pressure has carried over into the overnight and early morning session. All wheat production came in at 1.877 billion bushels, down from 1.881 in last month’s report. Carryout came n at 935 million bushels, down from 985 in last month’s report. We know that hot and dry weather had been a catalyst in supporting prices recently, those headlines have run their course and are not enough to keep the rally alive, so we are seeing long liquidation.
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