Favorable weekend rains across the US along with continued fund liquidation has the markets seeing red this morning. So far this morning corn is down 3, soybeans down 7 and wheat is down 4. After Fridays close the Funds were long 60,000 corn and 36,000 soybean contracts. For reference they were long 188,000 corn and 125,000 soybeans one month ago. With this afternoon’s crop conditions report and tomorrows USDA Supply and Demand report on the horizons I look for traders to reduce these positions more today. Reminder that tomorrow’s report will not have any change to acres or yield. Any adjustments to acreage and yield will come in the June 29th acreage report.
I don’t expect the markets to remain in these current levels much longer. There is a lot of investment money that has moved to the sidelines in the last week that I expect to re-enter the market in the coming weeks. Whether they will push the markets lower or higher will all be driven by weather.
Have a Safe day!