Yesterday’s Close: May corn futures finished yesterday’s session down ¾ of a cent, trading in a range of 3 ¼ cents.
Fundamentals: The corn market couldn’t get anything going yesterday, thanks to a slow news day and an overall slow trade day. We would not be all that surprised to see something similar today as we head into a long weekend. Yesterday’s weekly EIA ethanol report showed production increased by 14,000 barrels per day to 1,016,000 bpd. Export sales this morning came in at 966,000 metric tons, above the top end of expectations. 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 9 ¼ cents, trading in a range of 12 cents.
Fundamentals: Soybean selling continued on the lack of bullish headlines as optimism around trade diminishes despite efforts to put a positive spin on it. The market is exhausted with the constant spin on trade and has discredited optimistic headlines as they continue to overpromise 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. Export sales this morning came in at 403,200 metric tons, towards the low end of expectations.
Yesterday’s Close: May wheat futures finished yesterday’s session up 2 ½ cents, trading in a range of 5 ¼ cents.
Fundamentals: Yesterday’s session was the market catching its breath after rolling over hard in the previous session. As with the corn market, the funds seem to be locked in on their bearish thesis until the market is proven to be bullish. Export sales this morning came in at 545,500 metric tons, within the range of expectations.
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