Monday April 5th, 2010

Corn ended higher Monday in a modest short-covering bounce aided by outside markets. The market was higher throughout the session despite weakness in soybeans and wheat. Surging crude oil and a weaker dollar were supportive. Last week's CFTC commitments of traders report showed a large net short position for speculators, which left the market primed for some short-covering. The small gains do not change the market's trend, however.

Soybean futures ended lower Monday, revisiting last week's lows on bearish supply fundamentals. The market is still feeling the affects of last week's larger-than-expected U.S. stocks and plantings reports, with abundant world supplies, and the seasonal shift of export business to the Southern Hemisphere weighing on prices. Rain-producing storm systems forecast to move through the U.S. Midwest in the next week added to the defensive tone of the market.