Yesterday’s Close: May corn futures finished yesterday’s session down 3 ¾ cents, trading in a range of 5 ¼ cents. Funds were estimated sellers of 15,000 contracts.
Fundamentals: Weakness is the soybean and wheat pit did not do any favors for corn prices as the bearish funds continue to pounce. Funds are under the assumption that the recent weather through the Midwest happened early enough that it may delay things, but not shift the overall landscape significantly. In other words, they remain bearish until the market is proven to be bullish. We know the funds have a record net short position while the producers are holding a net long position for the first time on record. When the funds eventually look to cover, producers will be there ready to sell, potentially limiting the velocity of a short covering rally. May options will go off the board next week, this may keep a lid on volatility and prices for the next 9 sessions.
Yesterday’s Close: May soybean futures finished yesterday’s session down 10 ¾ cents, trading in a range of 12 ¾ cents. Funds were estimated sellers of 9,000 contracts.
Fundamentals: The market is exhausted with the constant spin on trade and has discredited optimistic headlines as they continue to over promise and under deliver. One day there will be a deal done, but we continue to believe that China has some leverage going into the election cycle and that a deal is further down the line than people want.
Yesterday’s Close: May wheat futures finished yesterday’s session down 14 ½ cents, trading in a range of 18 cents. Funds were estimated sellers of 10,500 contracts.
Fundamentals: Wheat got taken to the woodshed yet again yesterday as the market see’s little reason to be bullish on prices right here right now. Funds are aggressively short grains and don’t seem to be selling into contract lows for Mpls and KC contracts.
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