Last Week’s Close: May corn futures finished Friday’s session up 2 ½ cents, extending gains for the week to 5 ¾ cents. Friday’s Commitment of Traders report showed that funds sold 3,361 contracts through March 19th, extending their net short position to 261,326 futures/options.
Fundamentals: Weather has been a growing concern in the Midwest. It is a possibility that we see planting delays in areas and maybe even a shift of acres from corn to beans. Freight disruption on flooded rivers is also a concern with plenty of snow melt yet to come. We believe this issue will stick around for a minute, which could encourage a wave of fund short covering. Friday, the USDA will release their quarterly Grain Stocks report along with prospective plantings. We hope to have estimates available for you by midweek.
Last Week’s Close: May soybeans finished Friday’s session down 6 ¼ cents, putting prices 5 cents lower for the week. Friday’s Commitment of Traders report showed that funds bought 26,205 contracts through March 19th, trimming their net short position to 63,922 futures/options.
Fundamentals: The market has been fairly stagnant over the last two weeks as the market participants wait for new news, which we will likely get this week. The US and China will resume trade negotiations on Thursday which will inevitably lead to some sort of market moving headline. With that said, the headlines have lost their luster as this process gets drawn out, so perhaps it’s a buy the rumor, sell the news situation. On Friday, the USDA will release their quarterly Grain Stocks report along with prospective plantings. We hope to have estimates available for you by midweek.
Last Week’s Close: May wheat futures finished Friday’s session down 1 ½ cents, trimming gains for the week to 4 ¾ cents. Friday’s Commitment of Traders report showed that funds sold 1,359 contracts through March 19th, extending their net short position to 73,506 futures/options.
Fundamentals: Wheat futures have had a nice rally over the last two weeks, thanks to short covering and spillover strength from the corn market. Money flow has been the big catalyst recently and will continue to be as we head into Friday’s USDA report which will gives us a look at Quarterly Stocks. We hope to have estimates out by midweek.
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