Yesterday’s Close: May corn futures finished yesterday’s session 2 ¼ cents lower, trading in a range of 5 ¾ cents.
Fundamentals: Weekly export inspections came in at 765,185 metric tons, this was below the low end of the expected range. The funds have been relentless in their selling, putting them in the ball park of short 220,000 contracts. This is a big short position with recent weather and potential delays around the corner, as we go into planting season. There has also been a lot of talk about the potential logistic issues when the snow melts. We are friendly the market but understand that it could get worse before it gets better, putting our bias at Neutral/Bullish.
Yesterday’s Close: May soybean futures finished yesterday’s session down 5 cents, trading in a range of 9 ½ cents.
Fundamentals: Weekly export inspections came in at 874,363 metric tons, within the range of expectations. On top of that, we saw a sale of 926,000 metric tons to China. You would think that this would provide a boost to the market, but as we mentioned several times during the government shutdown, the market is constantly pricing information, the USDA is not the gate keeper, and this was likely baked into the cake. We will continue to keep an ear to the ground on any developments on trade but are not holding are breath for anything significant in the very near term.
Yesterday’s Close: May wheat futures finished yesterday’s session down 10 ¾ cents, trading in a range of 14 ¾ cents.
Fundamentals: Weekly export inspections came in at 592,001 metric tons, within the range of expectations. Global wheat demand seems stable but there has been no rush to buy US wheat, at some point low prices will cure low prices and boost demand. The funds have been relentless in their selling which has snowballed into more selling via forced liquidation. As mentioned in previous reports, we want to be friendly the market but there is no technical reason to buy so our bias remains neutral.
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