Grains closed higher in Chicago today led by sharply higher soybeans November soybeans closed up 34 1/2 while December Corn closed up 2 and December Wheat down 4 1/4.
Corn attempting to consolidate and caught between the the strong basis market and what looks to be a large on farm stocks and a ample new crop corn supply and demand table. Some looking at the potential of a national yield as high as 160 especially supported by the western belt. Assuming 80 million acres harvested equates to 12.800 billion bushel corn crop if..... The reality of the equation though is just how much weather premium is left? Ethanol and livestock margins improving yet, livestock is still relatively deep in the red territory. Funds have cut their long position in half in the last 30 days.
Soybeans still have the need to ration old crop. The squeeze is still on, and the delta will be unable to satisfy the transition demand like in past years. Large new crop acres needed in South America to balance supply and demand globally. Relatively the funds seem reluctant to let long soybean positions go. China demand rumor circulating again as they seem to still have interest in U.S. soybeans in the transition slots.
Jeff Neisler
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