Yesterday’s Close: July corn futures finished yesterday’s session up 1 ½ cents, trading in a range of 4 ¾ cents. Funds were estimated sellers of 1,000 contracts.
Fundamentals: Corn managed to hold firm yesterday as planting concerns offer support to the market. Those concerns coupled with a new calendar month for the funds have offered support right out of the gate on last night’s open. We would not be terribly surprised to see additional short covering propel prices higher, especially if we continue to see wet forecasts over the coming days and weeks.
Yesterday’s Close: July soybean futures finished yesterday’s session down 7 cents, trading in a range of 13 ¼ cents. Funds were estimated sellers of 7,000 contracts.
Fundamentals: Soybeans worked lower on the back of negative sentiment surrounding trade negotiations with China. White House Chief of Staff, Mick Mulvaney, said that there will be a resolution one way or the other in the coming weeks. A less optimistic spin than what we are used to from this administration. Prices have been telling us that we weren’t close to anything substantive for the better part of the last two weeks.
Yesterday’s Close: July wheat futures finished yesterday’s session down 5 cents, trading in a range of 9 ½ cents. Funds were estimated sellers of 5,500 contracts.
Fundamentals: Today is the first day of a new month, which could have funds repositioning in the coming weeks. We know that they have been aggressive sellers of wheat, mounting record net short positions on the back of ample supply and dismal demand. With that said, a lot of the bad news has been digested over the past month which leads us to believe that there may not be much juice left in this bearish grape. That is not a recommendation to buy, more or less a recommendation to not sell aggressively. The bottom is a process, not a point.
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