Today, September corn futures closed down ¾ cent at $4.10 ¾ (up 11 ¼ cents for the week). December corn closed down ½ cent at $4.17 ¾ (up 8 ¼ cents for the week). November soybeans closed up 8 ¾ cents at $8.91 ¾, up 23 ¼ cents from last Friday’s close.
Traders kept their cards fairly close to their chest this week but the market quietly gained some strength overall. Concerns about a dry weather forecast in the Eastern Corn Belt was offset by trade chatter that China had suspended imports of U.S. ag goods. The latest on that rumor was that they were halting NEW purchases, not canceling old ones so existing old crop sales should be unaffected if the story proves to be true.
Last week’s CFTC report showed funds backed off their net long position by around 41,000 contracts, now at 112,000 contracts long. Slight changes were made to their soybean position, adding 15,000 contracts to their net short position and putting them at 53,500 contracts short. Corn export numbers continue to be disappointing, with exports for June coming in at 3.069 MMT – the lowest June total since 2013 and down almost 25% from May. On the opposition end, U.S. soybean exports for the same month came in at 3.2 MMT, a record high for that month and slightly higher than May. Of that number, 1.73 MMT was headed to China.
REMINDER – USDA WASDE REPORT OUT AT 11 AM ON MONDAY, AUGUST 12TH. Calling your GMA ahead of time and placing offers is the best way to lock in a price on a volatile market day.
PRICE LATER CONTRACTS EXPIRE NEXT FRIDAY, AUGUST 16TH. Talk to your GMA or location ahead of time about rolling/pricing. Remember, defer contracts must be signed prior to the roll if you are not wanting to take the income this year.