CORN

• The corn market is trading higher across the board though off the day’s highs that challenged the recent high from early September. Rumors of early yields that are lower than expected may be leading to the rally and potential short covering.
• The Commodity Futures Trading Commission (CFTC) released its Commitment of Traders report Friday afternoon, showing that managed funds net sold 2,680 corn futures contracts, which brought their net short position to 134,814 contracts, as of Tuesday, September 17. Today, they are currently estimated to be net short about 146,000 corn futures contracts.
• Over the weekend a front brought widespread showers and some heavy rain across the Midwest, with another low pressure system developing that could bring more showers later this week before turning dry again. Another front is expected to move through next week that could impact harvest.

SOYBEANS

• Soybeans are leading the grain floor higher at midday with November beans posting just under a 30-cent high to low trading range. Rumors of lower than expected early yields and technical buying may be contributing to the day’s strength. Sharply higher soybean oil and meal are also lending support.
• Friday the CFTC released its Commitment of Traders report that showed managed funds bought 8,186 soybean futures contracts, bringing their net short position to 122,415 contracts, as of Tuesday, September 17. They are currently estimated to still be short about 122,000 soybean futures contracts.
• Safras & Mercado estimated that Brazil’s soybean crop is 0.5% planted as of September 20. This is behind the five-year average of 1.5% complete and compares to 1.6% complete last year. Hot and dry conditions have slowed the planting place, though rain is expected to move in later this week and next.

WHEAT

• The wheat complex is higher across all three classes at midday, with Chicago and KC leading the Minneapolis contracts. The rise in tensions in both the Middle East and the Black Sea regions could be a contributing factor along with carryover support from higher corn and soybeans.
• Friday’s CFTC Commitment of Traders report showed that managed funds bought 4,364 contracts of Chicago wheat, which brought their net short to 25,033 contracts as of Tuesday, September 17. As of this morning managed funds are estimated to be short about 24,000 contracts of Chicago wheat.
• Ukraine’s Ag Ministry stated on its website that this year’s Ukrainian grain harvest has reached 31.9 million metric tons, ahead of last year’s 29.8 mmt. Of this total, 22.3 mmt is wheat compared to 22.2 mmt last year.

Author

Scott Masters