Corn is down 2 while soybeans and wheat are both trading 3-5 higher overnight. Favorable weather nearby and in the extended forecasts continue to keep the funds short the corn board. Funds are estimated to be short 275,000 contracts. Money has been flowing into the equity sector but they are reluctant to invest in commodities until they see better evidence of demand. Right now Crude oil appears to be the best investment in the eyes of investors. With the USDA’s forecast of 3.3 billion bushels of surplus stocks in the next year, it is going to take a major event to change everyones thoughts.
Traders will begin to focus on next week’s WASDE report which could offer additional changes in demand but isn’t likely to see any major alterations. Ethanol production has increased, but unless it rises dramatically in the coming weeks the USDA’s current estimate will have to come down by 100 mb.
Look for prices to remain depressed and trading in the 10-15 cent range we have seen over the last month. Producers should be actively selling cash and new crop corn in the $3-$3.20 range when/if it is obtainable. In my opinion we have just over 3 weeks for weather to move the markets higher. If we don’t see weather issues by the 4th of July weekend the window will close fast.
Have a Safe Day!