Fund repositioning putting the pressure on prices

Corn and soybeans took some heat yesterday as they both gave back a chunk of last week’s gains. Traders and fund managers are trying to trim a little risk before tomorrow’s report. We are not sure where the fireworks will come from but one has to expect a growing soybean balance sheet and a steady to lower one for corn. Our thought is with strong flat price in both corn and soybeans domestically that any negative news causing a pullback will be used as a buying opportunity. We have to get thru the next 6 weeks of SA weather and see what early yields in N Brazil look like as they have started harvest. Conab cut their estimates for Brazil’s crop production to 140.5 MMT for soybeans and 112.9 MMT for corn and we expect the USDA to have similar numbers for Brazil tomorrow. NFC Grain Comments 1.11.22 (1)

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