Big fund buying

Overnight- Corn and soybeans futures slightly lower and wheat higher.

Funds were massive buyers in the last report ending last Tuesday.

Funds bought 115k contracts of corn and 107k contracts of soybeans.

This leaves a net short of 102k corn and 41K soybeans.

This was a record weekly buy for soybeans.

Futures did rally but the long traders were a little disappointed but with the amount of stored grain, especially corn, the farmer sold into the market and muted the rally and now the question is, will the funds try to go long or have they covered enough. We will need to see more buying to put out new highs and a pullback on fund buying without more planting delays will soften up the market.

The WASDE was friendlier than expected for corn and bearish for soybeans.

We have our starting balance sheets and will work from there.

They continue to slow play South America and Conab’s next release is tomorrow. We are guessing the spread between Conab and USDA will continue to grow.

Rio Grande do Sul losses due to flooding is growing and the damage to infrastructure could cause repercussions for next year’s crop. We might see less acres in the region.

Bottomline

The weather will be back in focus as there are showers predicted for the Cornbelt and we will see if the windows are big enough to get this crop planted. We are testing the 200 day in December corn this morning at 4.94. That will give a chance at 5.00. Don’t get blinded by the lights. This is time to get some sales in the books. NFC Grain Comments Options -new (48)