Our markets were higher again last night – all on perceived weather risk. There is talk of a high pressure ridge developing late in the month (pollination time) – pushing the funds/specs off the sidelines and into the game. The rest of this week looks nonthreatening with rainfall coming over the next couple days and a cooler/drier end to the week. It is just the end of the month where the rumors/thoughts about a hot/dry ‘dome of doom’ come into play. If that ridge fails to develop, expect this market to sell off.The crop ratings were out last night and were viewed as a little friendly with U.S. corn gaining 1% in the good-to-excellent category (expected to be 1-2% higher) while soybeans were unchanged (expected 1-2% higher). Indiana and Ohio look like the garden states with their G/E corn ratings both above 80%!
Yesterday we saw the latest Commitment of Traders report and it showed that the managed money (aka funds) were net short on corn – the first time since 2010 that the funds have been short the corn market. This is a little friendly to corn prices as it shows they do have room to lift those shorts if the opportunity presents itself.
Outside markets… the equity markets continue higher, gold is higher, while crude and the $US are a little weaker. Overall this is a neutral to slightly friendly input today.
Opening Calls
Corn up 9 to 11 cents
Soybeans up 18 to 23 cents
http://www.fccoop.com/markets/commentary_detail.cfm?CommentaryID=1767
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