Fund short covering done?

Overnight- Corn, soybeans and wheat are lower but well off their overnight lows.

We saw funds cover 87,000 shorts on the last Commitment of Traders report, but they still have net short positions of over 477, 000 as of the last report.

Will we see more short covering and what can spur it?

One thing could be more planting delays.

We were above average on the last crop progress report, and we will see how much we got done last week. There will be more delays this week as well so if we start falling well behind the average pace as we get into the middle of May the trade will start getting nervous.

The likely scenario is the futures will outrun the forecast so we will be looking for some hedging opportunities if this rally materializes.

Massive flooding in Rio Grande du Sol doing some damage to the 28% or so of soybeans will have significant damage. Estimates could top 2MMT of damage along with infrastructure damage as well.

Bottomline

We have technical and fundamental news coming together. Look for fund buying to take us up another leg and take advantage of this rally to get some new crop sales. If you thought, you were undersold on the lows don’t get caught not doing anything up here with +12.00 November beans and +4.85 December corn. NFC Grain Comments Options -new (44)

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