Heavy Rains Expected in the Midwest
Apr 30, 2018
Dec 18 corn pushed to new highs at $4.17 in the overnight session. Nov 18 soybeans traded to $10.57 ¾, just 3 cents away from the April 2nd highs. Planting delays TW in Midwest and dry conditions in S. Brazil lift grains.
Heavy rains are expected in the Midwest by the middle of the week which will stall planting progress. The Delta is expected to receive little additional rain which should allow for planting progress. Temperatures are expected to be above normal this week across the Midwest which will help with wheat growth and corn germination.
KC Wheat Weather
Rains should benefit northern and eastern plains. Dryness is expected to persist this week in W. Kansas, SE Colorado, W. Oklahoma and the Panhandle of Texas. The dryness will continue to stress the already struggling wheat crop. Wheat crop is at jointing stage in KS and at heading stage in OK and TX.
Rains were limited in S. Brazil over the weekend. No significant rains are forecast in S. Brazil this week which will stress the crop during pollination. Arg. rains slowed harvest in northern Buenos Aires and Entre Rios this weekend. More rains are expected to bring moisture to central growing region and slow harvest progress. Arg. soybean harvest is 54% complete. Arg. corn harvest is 30.9% complete.
Commitment of Traders Report- Week Ending April 24th
In the latest COT report, managed money decreased corn and soybean net long positions while KCBT saw a net increase. Soybean net long position was cut to 170,094 from 192,968 LW. Corn net long position was cut to 122,877 from 138,244 LW.
KCBT wheat net long position increased to 40,698 from 35,925 LW. Since April 24th strong buying has driven corn and soybean prices higher. According to Thomson Reuters trade sources estimate corn has added 23,000 longs, soybeans has added 20,500 longs, and wheat has added 11,500 longs.
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