Managed Money Funds Add More Shorts
Mar 14, 2016
Good Morning! Paul Georgy with the early morning commentary for March 14, 2016.
Grain markets are mixed as the CFTC report shows funds adding to already short positions in corn. Macro markets are calm as traders wait for Fed Meeting results mid-week.
Corn, soybeans and wheat will start this week with a positive bias after last week’s strong performance. Corn closed up 6 ¾, soybeans up 17 ¼ and wheat up 15 cents, however, there is concern mounting that any further rally could cause a pickup in grain movement domestically.
Rains across the Midwest and Delta should not be much of a problem to early planting. South America received some rain this weekend with more in the forecast. The benefit of rain overrides the slowdown in harvest.
With one of the most impactful USDA reports due to be released on March 31, Prospective Plantings just a few weeks away, trade is honing in on pre-report positioning. Allendale will be releasing the results of their Annual Planted Acreage Survey on March 16th. Stay tuned to Allendale’s Research to get the information from an industry leading survey.
Managed money funds were aggressive net sellers in corn last week as reported on the CFTC Commitments of Traders report. Funds sold 25,339 contracts to raise their net short positions to 229,176 contracts. They were net buyers of soybeans and wheat of 38,552 and 15,027 respectively.
NOPA Crush data will be released on Tuesday March 15th.
Palm oil has notched highs not seen since early 2015 while soybean oil is lagging a bit. May soyoil chart resistance crosses at 32.77 which was made on December 7, 2015.
The Agricultural Policy and Food Ministry of Ukraine expects that grain exports in the 2015/16 will expand to 37 million tonnes.
US oil rig count dropped another 6 last week to 386 rigs.
The next FOMC meeting is Tuesday and Wednesday of this week. Traders are wondering what kind of surprises a major central bank has for us this week.
Packers tried everything to get their needs bought at steady to lower money last week but feedlots won the battle by holding out for higher prices. Tight supplies of market ready cattle have keep the uptrend going in cash and futures.
Lean hog futures put in a strong performance last week but closed lower on a daily basis leaving some work for the bulls to continue the uptrend.
Dressed beef values were higher with choice down 1.19 and select up 1.27. The CME Feeder Index is 160.03. Pork cutout values are down .73.
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