Corn and wheat recovered nicely after the early pressure tied to China cancelling another 9.7 million bushels of Soft Red Winter wheat.
Mike Minor, Professional Ag Marketing, says wheat may have seen some short covering after the May Chicago wheat hit another new contract low, quickly pricing in the China news. However, he thinks China may cancel the balance of the wheat they have on the books, which is around 30 million bushels.
The rally in wheat helped to lift corn back higher and it closed above the 20-day moving average again for the 3rd straight session, another indicating of a bottom forming. Plus, export inspections totaled 44.2 million bushels and helped to support corn futures. The funds are still short nearly 297,000 contracts as of last Tuesdays CFTC Commitment of Traders Report and he thinks they are starting to cover those positions.
Soybeans had a higher week last week but ran into chart resistance during Monday’s session and saw profit taking and farmer selling after a nearly 48 cent rally off the recent contract lows. Plus, China’s Producer Price Index was down 2.7% marking the 17th consecutive lower month, which also added pressure.
