Corn: 3 to 4 higher
Beans: steady to 1 higher
On Friday we saw the corn market slip lower with the July contract, finishing the week 15 1/2 lower and December losing 20 cents. The funds were estimated to increase their short position by 6,700 more contracts, now with a net position being short more than 275,000 contracts. A couple of bearish factors that are impacting the corn market are a favorable weather forecast for the majority of the corn belt for the next week and a half, concerns that the resurgence of COVID-19 would curb summer driving and would put downward pressure on crude oil and ethanol futures, and the expectation that South American commodities will still be the cheaper commodity and will undercut the export demand for the U.S. going into the fall. Corn is trading higher this morning, however, due to some short-covering ahead of month-end and the USDA reports coming out tomorrow.
Soybeans finished last week lower as well. July beans finished the week 4 1/2 lower and November beans lost 7 cents for the week. The funds are estimated to be net long more than 40,000 contracts. Much like corn, beans are feeling the same COVID-19 pressures as well as U.S.-China trade tensions. The USDA’s quarterly stocks report will be out Tuesday morning with the average estimate for soybean stocks at 1.392 billion bushels. Last year’s stocks were 1.783 billion bushels for the same time frame. If soybean stocks come in at the estimate it would be the 2nd largest on record. The soybean market is trading mixed this morning. With the funds holding a long position going into the USDA report and the end of the month and quarter, it will not be a huge surprise if we see some profit-taking today and tomorrow morning.
On top of everything else, this is a shortened 4 day trading week due to the holiday. The Board of Trade and many other businesses will be closed Friday.
If you are trying to get something priced, please contact your Grain Marketing Advisor or Customer Service Specialist, so that we can put in an offer for you.