Funds do some covering but will they continue into next week’s report?

Overnight- Corn and wheat futures are higher while soybeans were lower.

On Friday’s CFTC Commitment of Traders report that marks trades ending 3/12: Managed Money covered 40K net shorts in corn, 17K in soybeans, 29K in soy oil and 18k in soymeal.

We have seen some nice rallies on this short covering, and they are still holding hefty short positions. The question is will they want to cover a chunk more before next week’s planting intentions and quarterly stocks on 3/28?

There is also shrinking crops in Brazil with worries that the monsoonal flow will be ending early this year and put stress on the Safrina corn crop.

Technical levels that could trigger more buying would be a close above 12.04 in May soybeans and 4.46 in corn.

We will also be watching the US weather across the corn belt as we look for an early start to the planting season.

Bottomline

Funds are starting to cover short positions and if they continue, we need to take advantage of the moves. This is what we have been waiting for and any moves above 4.85 in December corn and 12.00 in November soybeans should be protected with the upside left open. NFC Grain Comments Options -new (22)

Sign up for text alerts from NFC! Enter your mobile number to join: