Last week saw fund selling pound the markets lower with both speculators and index funds as big sellers. Hedge funds were sellers for the 7th consecutive week. Their position has gone from 216,000 contracts long to 73,000 contracts short. In that span we saw corn go from $4 to $3.40. Thursdays USDA report did little to move the markets despite giving us bullish news with lower stocks in the 2017-18 and 2018-19 crops.
Fundamentally the corn markets remain undervalued by at least 30 cents in my opinion. But rainfall amounts from 1-3 inches fell in areas of Kansas, Illinois, Eastern Iowa and Southern Wisconsin. Showers and moderate temperatures are expected in much of the Midwest during the next two weeks which will be ideal for pollination.
With no major reports to be released until the August 10th S&D report I would expect weather to be the main market mover for the next couple weeks. The next USDA report historically comes with yield adjustments as they will give state by state forecasts.
Producers looking to move old crop and clean out their bins before the 2018 crop starts to come off should give us a call to discuss some special options that we have for you.
Have a Safe Day!