Weaker markets this morning with corn and beans both trading 3 lower to open the week. Last week the funds reduced their short position in corn by 75,000 contracts. The decrease in funds short position last week is outweighing the wet Midwest weather.
I look for the markets to establish a sideways pattern this week with the amount of short covering we have seen and expectation for bearish report on Thursday. We could see another round of short covering if the dryer forecast for the middle of this week gets pushed back any further.
Thursdays report will be the second to last update to corn and soybean forecasts until the final January report. Experts are calling for Thursday’s numbers to show a 1 bpa yield increase in both corn and soybeans.
Producers should take advantage of the recent rally by making sales for December and January to core out bins with prices in the $3.50-3.60 range. Producers should also be making basis sales for March thru July at current levels. The later start to harvest is going to make this year’s new crop stretch further into the spring and summer months. This along with the large size of this crop will result in wider basis levels across the country.
Producers looking to move corn this fall should be making cash or basis sales to guarantee you have a spot to take your grain. With a smaller harvest window, space will be much tighter.
Have a Safe Day!