Corn is up 2 and soybeans are up 10 to start the last day of trading for the week. All commodities have had a good week as corn is up 8, soybeans up 20 and wheat up 20 so far on the week. We have seen more farmer selling this past week as producers take advantage of the recent move higher to move old crop bushels ahead of harvest.
The US and EU trade relations appear to moving in a positive direction which should support grains. Both sides have agreed to move forward on removing tariffs between the two. This agreement isn’t likely to increase corn exports, but does give the markets some positive political news.
8 of the last 10 trading sessions have seen the funs buyers of corn which has reduced their net short position from 153k to 129k. If we could get some more traction on the tariff front in the next couple weeks we could see this this trend continue.
Fundamentally the corn market is trading 20-25 cents below where I think it should be given stocks, demand and the potential size of this years crop. Whether or not we see the market correct is unknown. Producers locally need to be prepared if we don’t see this rally and make sure they have plans in place for this years crop.
Have a Safe Day!