October 23, 2017
Grain Marketing Specialist
CORN: As of 7:45 – unchanged
Funds are at a record short within the last 30 days, at nearly 171,000 contracts. Open interest on Friday was up about 26,000 contracts. Brazilian farmers are contemplating the need to push for a safrinha (second-crop corn) crop due to low prices, but we have also had reports of Argentine hectares being up almost 440,000 from last year. Good progress last week has the trade expecting corn harvest in the US to be almost ½ done. CZ17 is hovering around contract lows.
SOYBEANS: As of 7:45 – unchanged
In contrast to corn, soybean managed money is at a record long within the last 30 days. Planting progress in South America is a little behind schedule, and this can translate into a difficult season later in the year for their safrinha corn crop. US harvest progress is expected to be about 65-70%. We continue to see good export demand from China. Technically, SX17 is sitting right above its 200-day moving average.
WHEAT: As of 7:45 – MPLS down 1, KC unchanged
There seems to be no exciting news in the wheat complex lately. Like the corn funds, wheat funds are at a record short over the last month. Argentinian production has been slowed by recent rains, 90% of Ukraine’s wheat is planted, and France is at 47%. The large global stocks don’t seem to go away…