Corn is up 1 and soybeans are up 5 to start the day.
Monday was another bad day for the grains as traders added to their short positions. The Funds have pushed the position past 200,000 shorts. I think the low for now will come right around 1st notice day(Thursday). In good markets, prices tend to put the low in ahead of harvest, in bad markets they tend to liquidate into First Notice Day. In really bad markets, you get a bump in prices after the roll, and then liquidate again as the next contract is ready to move off the board into Delivery. (This would be February, against the March contract). If this trend follows, producers should look to market grain in December and January for the next several months as we may see new lows posted in February and March. The funds are currently estimated to be short 220,000 corn contracts which is nearing the short position of 250,000 contracts that I predicted a couple weeks ago.
Producers are advised to get firm offers in for sales they intend to make in the next 9 months and for 2024 new crop sales. We have a lot of time, but the bounces may be few and far between. Give us a call to help you select the target that is best for you.
Have a safe day!