A stronger US dollar and good soaking rains in SA over the long weekend pushed corn, soybean, and wheat prices lower. Corn ended the day down 2 cents as fund selling never did really materialize like some expected. Corn has now been down for 6 straight trading sessions with 5 of them coming after the bearish production report last Tuesday. Many producers and companies believe that the production number on corn by the USDA is too high but many also think usage is also overstated, either way with a carryout over 1.6 billion and an anticipated 3 million more corn acres next year, it will be difficult to rally corn until bad weather scares us next summer. Corn basis was virtually unchanged today as the market continues to get adequate supply and is trying to spread out sales to deferred months with board of trade carries leading the way.
Soybeans were off 10 cents today on fears of a huge SA crop. Rains continue to fall over much of the area with only a few places getting too much rain as they try harvesting in the extreme northern regions of Brazil. A soybean sale of 100,00 mmt to China was announced overnight and with delayed wet harvest in SA, soybean basis has firmed up once again at the export market and processor.
Scott Meyer
Funds are estimated long 223,000 contracts of corn and 57,000 contracts of soybeans.
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