Softer markets this morning with corn and soybeans down 1 and wheat down 3. The funds are in the midst of rolling their May shorts to July, but we have seen very little movement to the upside so far this week with this action. Traders are holding a record short position in the corn market of 302,000 contracts.
Traders are continuing to look for news to trade, but the lack of fundamental news continues to be the story. US weather shows a warming trend over the next couple weeks with mixed forecasts for rain depending on what weather model you follow. US and Chinese trade news will continue to do nothing to the market until we get some concrete agreements in place.
Export sales were disappointing this morning for beans as they came in at the lower end of expectations with just 14 million bushels. Corn was a little better than expected with 37.3 million bushels. Corn exports are running above what is necessary to reach the USDA’s current estimate for 2018/19, however, the large crops coming out of South America will probably have crops becoming available soon. In fact offers out of the Gulf are running about 35 cents more than ones out of Argentina for delivery from June to August. This will most likely make matching last years pace for the remainder of the marketing year an uphill battle unless the World surplus begins to shrink .
Reminder that the markets are closed tomorrow in observance of Good Friday.
Didion Grain Receiving will be closed Friday 4/19/19.
Have a Safe Day!