Corn up 2
Beans down 1
Friday corn markets closed lower due to fears of this week’s USDA outlook forum and China announcing that they secured 500,000 MT of Ukrainian corn. This was disappointing news to corn traders as the expectation was that China would be making new corn sales from the U.S. The trade will now be watching to see what the news is of the USDA’s outlook forum—which will point the direction for the new crop balance sheet and assumptions of planted acreage, yield and demand. Last week’s WASDE report didn’t give much hope that China would be doing much corn business as previously expected. Corn is trading higher today with news that there may have been some Chinese purchases over the weekend.
Beans closed lower on Friday but they were higher week-on-week. Both trend and momentum indicators are pointing higher. Funds have a short position going into the outlook forum which should support bean prices. The trade is expecting to see bean planted acreage increase. Traders have reported that the funds’ short position was larger than expected. Basis has tightened up in many areas due to tight farmer holding.