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We have been greeted with predominantly positive price action in the grain/soy arena as we begin this new week. I suspect the rationale behind the strength stems from a slightly excessive breakdown last Friday and the fact that there is little bearish news circulating this morning. Note I did not say we actually had any bullish news. We will have a number of production updates throughout the day for both North and South America, but I suspect nothing that holds major price impact.
Last Friday AgRural released crop progress updates for Brazil. They now estimate the Brazilian bean harvest at 91% complete and the first season corn harvest at 77%. They did note as well that dry conditions in Southern Brazil are raising concerns for the safrinha crop, which considering was planted a bit late, to begin with, does bare watching. Of course, the USDA provides updates this afternoon for planting progress and crop conditions. The trade is expecting corn planting to be around 8% complete.
Managed money shifted positions a bit last week. In corn, they sold 17,000 contracts but remain long 138,000. They added 17,000 to their longs in beans and now stand at 193,000. Over in wheat, they are still short 50,000 contracts but had reduced the position by 5,000.
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