Grains were trying to start the week in positive territory as soybeans led the complex higher. In outside markets, the US Dollar plunged overnight giving up 0.8% in value as the French election over the weekend caused the Euro to surge against the greenback.
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US Weather looks to be wet over the next week in the WCB. A storm system should bring precip to the Northern Plains, Upper Midwest and stretch into MO/IL by Wednesday. Cold temps in the Northern Plains should bring below freezing in North Dakota. By the weekend, another round of moisture should bring rains again to much of the WCB. Iowa is expected see about 4 inches of rain over the next two weeks.
On Friday after the close, the CFTC report showed funds had extended their bearish position in the grain complex. Speculators are not typically short during the growing season, but the funds' combined short position was the third-largest on record behind the weeks ended March 1 and March 8 of 2016, with the former at 420,555 contracts. Funds now hold their shortest-ever combined position during the U.S. growing season - despite rarely ever being net bearish at this time - surpassing the 324,226-contract low set on May 26, 2015.
Ukrainian Agriculture Minister Taras Kutovy said on Monday that he saw the 2017 wheat harvest at no less than 24 MMT. Kutovy added that the area under wheat cultivation is 6.2 million hectares, and that most crops are in good condition. Earlier in April analyst UkrAgroConsult revised up its forecast for the wheat harvest to 24.2 million tonnes from 23.5 MMT. Last year’s crop was 26.8 MMT.
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