Corn made new contract lows yesterday and took out the low from two weeks ago. The lower trade has been influenced by a forecast. The outlook for the majority of the Midwest looks to be conducive to getting some field work done over the next several days before spotty storms hit the corn belt next week.
Last night’s crop progress report showed 6% of the US corn and 1% of the US beans have been planted. This compares to the 5% for corn last year and 2% for beans last year. Don’t look for the markets to add any premium to this market based on late plantings unless we get to the 2nd week of May and are significantly behind.
Funds closed yesterday’s trade short 349,000 contracts and 101,000 bean contracts! Much to everyone that is long the physical crops, these long positions are not a catalyst for the markets to rally. Every short position that traders are currently holding is in the green! (profitable) Producers should be aggressively selling any small bounces in the market as weather this summer may be the producers only hope to move the markets slightly higher.
Don’t forget to put firm offers in for old and new crop corn before you head to the fields. You don’t want to miss an opportunity to capture the best market for your crop because you were too busy planting it.
Have a Safe Day!