Quiet markets overnight as corn was up a half and soybeans were up 1. We saw early support in the market yesterday with a two week forecast showing cooler and wetter weather, but the record short position for traders continued as they sold off and the markets closed unchanged. Last nights corn planting progress came in at 15% complete which is up 9% from last week and the same as last year this time. We are behind the 5 year average of 27%. I believe we will have to get into the second full week of May with major planting delays before the market will begin to question the potential size of this years crop and add any premium. Traders will continue to monitor forecasts for direction.
The US and China are back at the table in Beijing today to continue the never ending trade talks. We don’t expect any resolution this week, but poor economic data coming out of China could spur them to act a little faster.
Traders were short 327,000 contract of corn and 149,000 contracts of soybeans after last nights close. This is down from last Tuesday’s record as traders take some profits heading into month end.
Producers should actively sell any rallies that we see in the markets as the potential weather market rally if seen, will not last long at all! I would advise selling cash corn in the $3.35-3.45 range for spring/summer and $3.50-3.60 range for fall delivery.
Have a Safe Day!