Corn – Funds major buyers of 68K, spill over pressure from beans, reason to expect a bullish report
↑ Funds were major buyers of 68K on yesterday’s COT report, now long 229K or 53% of record
↓ Overnight trade saw a new round of panic selling in beans which spilled some pressure to corn
↑ Friday’s report has a chance at seeing both ethanol and exports raised as well as a small chance for a
small yield decline although most focus will likely be on demand
↑ By the looks of it funds are simply following what carryout is suggesting which is a continued grind
higher in price due to 5 USDA reports in a row that have lowered carryout due to very strong demand
Beans – A new round of panic selling possibly from Trump statements, no improvement in SA forecast
↓ Overnight may be reacting to one of Trump’s latest statements that he has no intention of easing
back on tariffs and currently still plans on remaining aggressive
↔We have seen fear selling off and on in beans for 2 months now so we should expect headlines like
this to continue having short term effects on beans and slightly also on corn
↑ ARG and southern BRA maps remain unchanged with no improvement in rain in the 10 day outlook
↑ Funds buyers of 25K, now short 87K or 23% of record, this is the closest position they have had to flat
since September, funds are not the ones panic selling and are likely following a lower carryout trend
Wheat – Funds buyers of 8K, this market still mostly a follow of other grains with the most pressure
↑ Funds were buyers of 8K, short 87K or 53% of record, it has been almost 2 months since funds have
bought this much in one week
↔Wheat continues to follow other markets with a bearish bias due to a still very strong US dollar
Cattle – BB higher, feeder index higher, showlist +30K, we see this week if NE trades cash over $200
↔Yesterday’s PM BB was choice +1.86 select +6.61 packer BE at 200.16, packer cushion $3.59
↑ BB and feeder index higher yesterday, all that is needed to start the week with support
↓ A +30K showlist should be watched, showlist has been 4th or 5th on the list of importance in recent
weeks but after last week was +19K, having a showlist +30K this week is worth noticing
↔We will see if cash bids tomorrow can move above $200 in NE, it is still likely that many cattle are
offered for sale at that level in all areas of the country and a +30K showlist seems tough to break 200
↑ The higher BB from yesterday should be enough for our standard 0.50 – 0.75 higher start