Soybeans and wheat are down two while corn is up 2 this morning.
Corn has made small gains in the past few days, but it’s mostly just been a change in the spread and the position the funds hold. The funds will likely remain short corn unless the weather changes, just not as heavy. Ethanol production is picking up and crude oil has traded to 40 dollars a barrel. Prices don’t need to be at 3.20 vs July, but it’s up the funds at this point.
China’s soybean imports were 9.4 mmts for May, up 2 mmts from last may at 7.4 mmts. China is expected to buy similar amounts in June and July, with much coming from the US. The demand picture for beans is pretty good, as this is the most beans China has ever taking in this time period.
Crop ratings will be out later today, and they are expect to increase again. Corn should come in close to 75% good/excellent and beans should be 72% good/excellent. The USDA should also say that most all of the crop is planted as well. The crop survey on acres for June may actually have a chance of being half right for once due to the weather we have had this spring.
Look for the markets to continue to trade sideways this week heading into the USDA report on Thursday. Thursdays S&D report is not expected to help the markets. If the Funds reduce any of their short position ahead of this report, producers should take advantage of the market gains and make sales of old and new crop corn!
Have a Safe Day!